MicroStrategy Incorporated today announced its intention to offer $700 million aggregate principal amount of convertible senior notes due 2028 in a private placement. The notes are expected to be offered to qualified institutional buyers under Rule 144A of the Securities Act of 1933.
The notes will bear interest payable semi-annually and will mature on September 15, 2028, unless earlier repurchased, redeemed, or converted. MicroStrategy may redeem the notes for cash under certain conditions, and holders may also require MicroStrategy to repurchase them for cash.
The notes will be convertible into cash, shares of MicroStrategy’s class A common stock, or a combination of both, at MicroStrategy’s election. The conversion rate will be determined at the time of pricing.
MicroStrategy plans to use the net proceeds from the offering to redeem its outstanding 6.125% Senior Secured Notes due 2028 and to acquire additional bitcoin.
