MicroStrategy Plans $500M Senior Notes Offering to Boost Bitcoin Holdings
Summary:
MicroStrategy plans to issue $500 million in convertible senior notes due by 2032 to approved institutional investors, according to the Securities Act 1933. The interest on these guaranteed notes will be paid biannually, beginning from December 15, 2024, with a maturity date of June 15, 2032. The primary use for the net proceeds will be to accumulate more Bitcoin (BTC), in keeping with MicroStrategy's objective to utilize BTC as its key treasury reserve asset.
MicroStrategy has unveiled plans to issue $500 million convertible senior notes due by 2032. This confidential offering to approved institutional investors is in line with Rule 144A of the Securities Act 1933 and will go ahead depending on market conditions and other elements. The notes, guaranteed by MicroStrategy, will garner interest which will be paid semi-annually in arrears on June 15 and December 15 annually, starting from December 15, 2024. The maturity date is slated for June 15, 2032, although earlier conversion, redemption or repurchase is possible.
In other news, speculators are wagering $6.9B against MicroStrategy stocks.
In regard of strategy and profits, the main use of the net proceeds will be for the procurement of extra Bitcoin (BTC), thereby aligning with MicroStrategy’s long-term objective to use BTC as its main treasury reserve asset. Initial purchasers are expected to be awarded the option to buy an extra $75 million in the total principal amount of the notes.
Provided that MicroStrategy redeems fewer notes than the total, a minimum of $75 million total principal amount of notes must remain outstanding and not eligible for redemption as of the appropriate redemption notice period.
Conclusively, Bitcoin holders with their 104% CAGR, outperform the ‘steady growth’ portfolio.
Published At
6/13/2024 2:02:18 PM
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