MicroStrategy Plans to Raise 600 Million Dollars via Convertible Notes for Bitcoin Acquisition

Crypto News- MicroStrategy, renowned for its robust Bitcoin ventures, unveils a strategic move: offering $600 million in convertible senior notes due 2030, per today’s press release. The aim? Amplify Bitcoin holdings and bolster operational requisites.

“Investing in more Bitcoin and supporting business needs top MicroStrategy’s agenda,” the release iterates. The notes, acting as loans or investments in Bitcoin, allow holders the option to convert them into company shares.

MicroStrategy Plans to Raise 600 Million Dollars via Convertible Notes for Bitcoin Acquisition

The private offering, tailored for qualified institutional buyers, adheres to Rule 144A under the Securities Act of 1933. An additional $90 million in notes may also be available post-initial issuance.

Scheduled for maturity on March 15, 2030, the notes, unsecured senior obligations of MicroStrategy, accrue interest semi-annually. Redemption for cash post-March 2027 and note repurchase rights in September 2028 offer flexibility. Conversion into cash, company shares, or a mix thereof is feasible under stipulated conditions.

Importantly, the offering won’t undergo registration under the Securities Act or state securities laws, restricting sales in the US sans registration or an applicable exemption.

“The notes and shares issuable upon conversion have not been and will not be registered,” the release emphasizes. Any offer will be via a private offering memorandum.

This strategic move echoes MicroStrategy’s February 2021 initiative, underscoring its steadfast support for Bitcoin. With 193,000 BTC in its coffers, valued around $8.3 billion, MicroStrategy continues its Bitcoin advocacy journey.