Bitcoin
MicroStrategy issues $500 million in convertible notes to buy more Bitcoin
Microstrategy is expected to offer $500 million in convertible senior notes due 2032 to finance further Bitcoin acquisitions.
This private offering targets qualified institutional buyers and seeks reinforce company resources amid volatile market environments.
As of June 13, MicroStrategy held more than 1% of the circulating BTC supply, equivalent to 214,400 BTC, valued at approximately $15 billion.
Offer details
MicroStrategy said it will offer initial purchasers the option to purchase an additional $75 million in notes within 13 days of issuance. The convertible senior notes will be unsecured and will mature on or before June 15, 2032. Interest will be paid semi-annually, with the first payment due on December 15, 2024.
The company stated that it reserves the right to redeem the notes for cash, in whole or in part, after June 29, 2029, under specific conditions that provide flexibility in financial management.
Investors can convert the notes into cash, shares of MicroStrategy Class A common stock, or a combination of both. It will offer a versatile financial instrument aligned with the company’s growth and investment strategy. Conversion terms including fee and price will be finalized according to the offer price.
The offer and any subsequent conversion actions of MicroStrategy Class A Common Stock will not be registered under the Securities Act or state securities laws. Consequently, they cannot be offered or sold in the US without registration or an applicable exemption from registration requirements.
MicroStrategy said it will use the proceeds to bolster its investment in Bitcoin while also addressing general corporate purposes, according to the president michael saylor commitment to the asset.
Mentioned in this article
Editor Editor 
Andjela Radmilac
Analyst at CryptoSlate
Armed with a classical education and an eye on the news, Andjela dove head first into the crypto industry in 2018 after spending years covering politics.