MicroStrategy® Incorporated (Nasdaq: MSTR) has unveiled plans to raise $500 million to purchase more Bitcoin through a private offering of convertible senior notes due 2031. The offering, which is subject to market conditions, is targeted at eligible institutional buyers under Rule 144A of Securities Act of 2019. 1933.
BREAKING: MicroStrategy to raise $500 million to buy more #Bitcoin pic.twitter.com/EU19xmKB2x
– Bitcoin Magazine (@BitcoinMagazine) March 13, 2024
The Notes, the unsecured and senior obligations of MicroStrategy, will bear interest semi-annually payable on March 15 and September 15, beginning on September 15, 2024. Scheduled to mature on March 15, 2031, the Notes may be redeemed by MicroStrategy on or after March. 22, 2028, under certain conditions.
Investors will have the option to convert the notes into cash, shares of MicroStrategy Class A stock, or a combination thereof. The conversion will take place before September 15, 2030 based on specific events and periods, while after that date, the conversion will be unrestricted until two days before the due date.
Proceeds from the offering will primarily fund the purchase of additional bitcoins and support general corporate purposes, the announcement said. The sale will be limited to institutional buyers qualified under Rule 144A, with no registration under the Securities Act or other jurisdictional securities laws.
Just last week it was announced that MicroStrategy was raising more funds to buy more Bitcoin. Following this announcement, MicroStrategy acquired 12,000 Bitcoin for $821.7 million last Monday.
