Time to buy Bitcoin again! MicroStrategy announces a $500 million convertible bond issuance plan.

MicroStrategy (MSTR) announced plans to privately offer $500 million of convertible senior notes to acquire more Bitcoin and support corporate initiatives.

Issuance of $500 Million in Convertible Senior Notes

MicroStrategy announced that it will issue $500 million in convertible senior notes in a private placement, set to mature in 2032.

To attract initial buyers, MicroStrategy plans to offer the option to purchase an additional $75 million in notes within 13 days after the initial issuance date. This flexibility ensures the company can adapt to market demand and conditions.

Details of the Convertible Notes

These unsecured senior notes will pay interest semi-annually on June 15 and December 15, starting from December 15, 2024. The notes will mature on June 15, 2032, unless redeemed, repurchased, or converted pursuant to the terms.

Starting from June 20, 2029, MicroStrategy may choose to redeem all or part of the notes for cash, provided that at least $75 million remains outstanding after redemption. Holders also have the right to request redemption on June 15, 2029. Conversion options include cash, MicroStrategy Class A common stock, or a combination designated by the company. Conversions can take place under certain conditions until December 15, 2031, and may be made at any time within the last two days before maturity.

Purpose of the Issuance: To Buy Bitcoin, Of Course

The proceeds from this issuance will primarily be used to purchase more Bitcoin and for general corporate purposes, aligning with MicroStrategy's strategic focus on expanding its cryptocurrency holdings.