MicroStrategy has announced plans to offer $500 million in convertible senior notes, with the intention of using the proceeds to acquire additional Bitcoin. The notes are set to mature in 2032. The company revealed that qualified institutional buyers will have the opportunity to purchase unsecured convertible senior notes due in 2032. The offering is contingent on market conditions and other factors, with the notes bearing interest payable semi-annually every June 15 and December 15 until maturity in 2032, unless repurchased, redeemed, or converted as per the terms of the offering. MicroStrategy retains the option, under specific conditions, to redeem some or all of the notes for cash.

Holders of the notes will be entitled to request MicroStrategy to repurchase all or a portion of their notes for cash on June 15, 2029. The funds raised from this offering will be utilized by MicroStrategy to purchase more Bitcoin, in addition to the 214,400 BTC held by the company as of April 30, 2024. The notes are convertible into cash, shares of the company's class A common stock, or a combination of both, with the initial conversion based on the composite volume weighted average of MicroStrategy's stock from 9:30 am to 4:00 pm EDT on the pricing date. The net proceeds from the offering will also be allocated to other corporate purposes.