MicroStrategy Announces Pricing of $700 Million Convertible Senior Notes Offering 

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MicroStrategy has announced the pricing of its $700 million offering of 2.25% convertible senior notes due 2032. This significant move aims to bolster the company’s financial strategy and attract institutional investors. Read on to discover how this offering impacts MicroStrategy’s future and its plans for the proceeds.

Details of the Convertible Senior Notes 

Initially set at $500 million, the offering was upsized to $700 million due to strong demand. The notes are unsecured and senior, with an annual interest rate of 2.25%, which is payable semi-annually. The notes will mature on June 15, 2032, with MicroStrategy retaining the option to redeem them under specific conditions after June 20, 2029.

Conversion and Redemption Terms 

The notes are convertible into cash, shares of MicoStrategy’s class A common stock, or a combination of both. The initial conversion rate is 0.4894 shares per $1,000 principal amount, translating to a conversion price of approximately $2,043.32 per share. This represents a 35% premium over the recent average price of MicoStrategy’s stock.

Use of Proceeds 

MicroStrategy plans to use the estimated net proceeds of $687.8 million primarily to acquire more bitcoin and for general corporate purposes. This move aligns with their strategy to strengthen their bitcoin holdings and support their long-term vision of technological innovation and financial growth.

With this significant financial manoeuvre, MicoStrategy continues to emphasise its commitment to leveraging Bitcoin and advancing its technological infrastructure. This offering is poised to enhance the company’s financial flexibility and drive future growth.
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