MicroStrategy (MSTR), a business intelligence company listed on the Nasdaq and a bitcoin holder, announced on Thursday that it plans to issue $500 million worth of convertible senior notes due in 2032. The proceeds from the offering will be used for other corporate purposes and to purchase more bitcoin. Starting on December 15, 2024, interest will be paid semi-annually in arrears on June 15 and December 15 of each year for the notes, which are senior liabilities of MicroStrategy and will be unsecured. There is no assurance as to when or under what terms the offering may be completed; it is contingent upon market conditions. On or after June 20, 2029, the corporation may redeem all or a portion of the notes for cash, subject to certain restrictions.
The private offering will be open to those who Rule 144A of the Securities Act of 1933 deems qualified as institutional buyers. MicroStrategy is the largest publicly disclosed bitcoin holder, with 214,400 BTC, valued at nearly $14 billion. In 2020, the business started to amass the top cryptocurrency, utilising it as a reserve asset.