MicroStrategy® Incorporated (Nasdaq: MSTR) has revealed plans to raise $500 million to purchase more bitcoin through a private offering of convertible senior notes due 2031. The offering, subject to market conditions, targets qualified institutional buyers under the rule 144A of the Securities Act of 1933.
BREAKING: MicroStrategy to raise $500 million to buy more #Bitcoin pic.twitter.com/EU19xmKB2x
– Bitcoin Magazine (@BitcoinMagazine) March 13, 2024
The Notes, MicroStrategy's senior unsecured obligations, will bear interest payable semi-annually on March 15 and September 15, beginning on September 15, 2024. Scheduled to mature on March 15, 2031, the Notes may be repurchased by MicroStrategy from March. 22 2028, under certain conditions.
Investors will have the option to convert the notes into cash, shares of MicroStrategy's Class A common stock, or a combination of both. Conversion before September 15, 2030 will take place based on specific events and periods, while after this date, conversion will be unlimited until two days before the due date.
Proceeds from the offering will primarily fund the acquisition of additional bitcoins and support the company's general objectives, the announcement said. The sale will be limited to qualified institutional buyers under Rule 144A, without registration under the Securities Act or other jurisdictional securities laws.
Last week it was announced that MicroStrategy was raising more money to buy more bitcoin. Following this announcement, MicroStrategy acquired 12,000 BTC for $821.7 million last Monday.