MicroStrategy, a leading business intelligence firm, has announced a $700 million private offering of convertible senior notes due in 2028. The company plans to use the proceeds from this offering to redeem its $500 million Senior Secured Notes and acquire additional Bitcoin.

The senior, unsecured notes will bear interest semi-annually and will be offered to institutional buyers under Rule 144A of the Securities Act. The offering also includes an option for purchasers to buy an additional $105 million in notes. The proceeds will be used to redeem the company’s 6.125% Senior Secured Notes, due in 2028, at a redemption price of 103.063% of the principal amount, plus accrued interest.

MicroStrategy stated, “Upon redemption of the Senior Secured Notes, all collateral securing the Senior Secured Notes, including approximately 69,080 bitcoins, will be released.”

Additionally, the remaining proceeds will be allocated toward purchasing more Bitcoin, in line with the company’s long-standing strategy of Bitcoin accumulation. The offering is subject to market conditions, with no guarantee of the timing or terms of completion.

The offering follows MicroStrategy’s consistent efforts to increase its Bitcoin holdings, positioning the company as one of the largest corporate Bitcoin holders globally. CEO Michael Saylor has emphasized Bitcoin as a superior asset to cash, which continues to guide the company’s treasury strategy.

This offering will be made available exclusively to institutional buyers, as the notes and shares issued upon conversion will not be registered under the Securities Act. The final terms, including interest rates and conversion rates, will be determined at the time of pricing.

Bitcoin Magazine Article

MicroStrategy Press Release