MicroStrategy plans to sell $500 million in stock to fund acquisitions

MicroStrategy announced plans to offer $500 million in convertible notes maturing in 2032.

The private offering to qualified institutional buyers will comply with Rule 144A under the Securities Exchange Act of 1933 and is subject to market conditions and other factors.

“The Notes will be senior unsecured obligations of MicroStrategy and will bear interest payable semi-annually on June 15 and December 15 of each year, commencing on December 15, 2024. The Notes will mature on June 15, 2032, unless previously repurchased , exchanged or transferred according to its conditions.

source: Michael Saylor

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Procedures and strategic objectives

The net proceeds will primarily be used to acquire additional Bitcoin (BTC), consistent with MicroStrategy’s long-term goal of using BTC as a treasury reserve asset.

The company plans to give initial purchasers of the notes the opportunity to purchase an additional $75 million of the “aggregate principal amount of the notes.”

“If MicroStrategy repurchases less than all of the outstanding securities, then at least $75 million of a total amount of securities must be outstanding and not subject to repurchase as of the date of the repurchase notice concerned.”

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This is a developing story, and more information will be added as it becomes available.

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