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MicroStrategy has announced the pricing of its $700 million offering of 2.25% convertible senior notes due 2032. Initially set at $500 million, the offering was upsized due to strong demand. The notes will be sold privately to qualified institutional buyers under Rule 144A of the Securities Act of 1933. MicroStrategy has also granted an option to purchase an additional $100 million within 13 days of issuance.
The notes, maturing on June 15, 2032, will accrue interest at 2.25% per annum, payable semi-annually. The company may redeem the notes for cash starting June 20, 2029, if certain conditions are met. Additionally, noteholders have the option to require repurchase in 2029 or upon significant corporate changes.
Convertible into cash or MicroStrategy’s class A common stock, the notes have an initial conversion rate of 0.4894 shares per $1,000 principal amount. The proceeds, estimated at $687.8 million, will primarily fund further Bitcoin acquisitions and other corporate needs. This strategic move underscores MicroStrategy’s ongoing commitment to cryptocurrency investment.
