MicroStrategy Incorporated has completed an approximately $1.01 billion offering of 0.625% convertible senior notes due 2028.
Offering Details
The private offering, which concluded on Sept. 19, targeted institutional investors and enabled the conversion into cash or MicroStrategy stock.
Redemption Options
The company plans to use part of the funds to redeem $500 million in Senior Secured Notes, releasing collateral, including 69,080 Bitcoin. The notes are unsecured and carry a 0.625% annual interest rate, payable semi-annually on March 15 and Sept. 15.
Additional Facts
According to the official MicroStrategy press release, the notes will mature in 2027 unless they are converted, redeemed, or repurchased earlier. The initial conversion rate is set at 5.4589 shares of class A common stock per $1,000 principal amount of notes, translating to roughly $183.19 per share, which is a 40% premium over the stock’s price as of Sept. 17.
This is a developing story, and further information will be added as it becomes available.
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