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MicroStrategy completes a $1.01 billion convertible note offering, allocating proceeds for Bitcoin purchases and debt repayment.
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MicroStrategy Incorporated has completed an approximately $1.01 billion offering of 0.625% convertible senior notes due 2028, with plans to use a portion of the proceeds for Bitcoin acquisition.
The private offering, which concluded on Sept. 19, targeted institutional investors and enabled the conversion into cash or MicroStrategy stock.
The company also plans to use part of the funds to redeem $500 million in Senior Secured Notes, releasing collateral, including 69,080 Bitcoin (BTC).
Related: REX Shares, Tuttle launch 2X long, short MicroStrategy ETFs
Convertible note details, redemption options
The convertible senior notes are unsecured and carry a 0.625% annual interest rate, payable semi-annually on March 15 and Sept. 15.
According to the official MicroStrategy press release, the notes will mature in 2027 unless they are converted, redeemed, or repurchased earlier.
The publicly traded software company has set the initial conversion rate at 5.4589 shares of class A common stock per $1,000 principal amount of notes.
This conversion translates to roughly $183.19 per share, reflecting a 40% premium over the stock’s price as of Sept. 17.
Related: Cathedra Bitcoin cools off mining to tap MicroStrategy playbook
This is a developing story, and further information will be added as it becomes available.
This article first appeared at Cointelegraph.com News
