As became known yesterday on Sept. 19, MicroStrategy completed its 0.625% convertible senior notes offering, an event that saw the company successfully raise over $1 billion.
This impressive total includes $135 million from an option that the initial purchasers exercised, showcasing strong demand on the private market, where the notes were sold to qualified institutional buyers.
Tomiwabold OlajideImportantly, MicroStrategy intends to use the net proceeds from this offering, amounting to approximately $997.4 million after fees, to fully redeem the outstanding half a billion of its 6.125% Senior Secured Notes due 2028.
This strategic move not only addresses existing obligations but also positions the company to acquire additional Bitcoin, further solidifying its commitment to the major cryptocurrency. The balance of the proceeds will be allocated for general corporate purposes, but the focus on Bitcoin acquisition highlights the company's ongoing strategy to enhance its crypto holdings.
Yuri MolchanSecuring these unsecured notes is a big move for MicroStrategy, with interest payments set to start on March 15, 2025. The notes will mature on Sept. 15, 2028, unless the company decides to redeem or convert them earlier.
One interesting thing about these notes is that the company can redeem them for cash starting Dec. 20, 2027, if the stock price of MSTR reaches at least 130% of the conversion price.
Mushumir Butt
Alex Dovbnya
Yuri Molchan