TYSONS CORNER, Va. - MicroStrategy Incorporated (NASDAQ:MSTR), the enterprise analytics and Bitcoin investment company, announced its intention to offer $600 million in convertible senior notes due 2030 in a private offering. The notes are aimed at qualified institutional buyers, with an additional option for purchasers to buy up to $90 million more within a 13-day period starting from the issuance date.
The notes, unsecured senior obligations of MicroStrategy, will pay interest semi-annually and are set to mature on March 15, 2030, unless repurchased, redeemed, or converted prior to that date. From March 22, 2027, MicroStrategy may choose to redeem the notes in cash, in whole or in part. Noteholders will have the right to require the company to repurchase their notes on September 15, 2028.
Conversion of the notes into cash, MicroStrategy's class A common stock, or a combination thereof, is at the company's discretion, with the conversion conditions set to be defined at the offering's pricing stage. Prior to September 15, 2029, conversion is restricted to certain conditions and periods, but thereafter, conversion can occur at any time up until the second scheduled trading day before the maturity date.
The proceeds from the sale of the notes are intended for the acquisition of additional Bitcoin and general corporate purposes. This move aligns with MicroStrategy's strategy of using Bitcoin as its primary treasury reserve asset and reflects its commitment to the development of the Bitcoin network.
The offering and sale of the notes, and the class A common stock potentially issuable upon their conversion, will not be registered under the Securities Act or any state securities laws, and as such, cannot be offered or sold in the United States absent registration or an exemption from registration requirements.
MicroStrategy is known for its dual focus on enterprise analytics software and Bitcoin investment. The company describes itself as the world's first Bitcoin development company and leverages its financial market activities, advocacy, and technology innovation to support the Bitcoin network.
The information mentioned herein is based on a press release statement.
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