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MicroStrategy Incorporated has successfully closed a $1.01 billion private offering of 0.625% convertible senior notes due in 2028, aimed primarily at institutional investors. The company has announced plans to allocate a substantial portion of the proceeds towards expanding its Bitcoin holdings. This move highlights MicroStrategy’s continued commitment to integrating cryptocurrency into its financial strategy.
The offering allows for the notes to be converted into either cash or MicroStrategy stock. This strategic flexibility supports potential growth and investor confidence. Additionally, MicroStrategy intends to use part of the funds to redeem $500 million in Senior Secured Notes, effectively freeing up 69,080 Bitcoin as collateral.
Scheduled to mature in 2027 unless earlier converted, redeemed, or repurchased, these convertible notes offer an initial conversion rate of 5.4589 shares of class A common stock per $1,000 principal, corresponding to a 40% premium over the stock’s price as of September 17. This initiative not only strengthens the company’s financial footing but also solidifies its position as a major player in the cryptocurrency sphere.
