MicroStrategy Secures $2.6B in Convertible Notes to Fuel Bitcoin Purchases

MicroStrategy (NASDAQ: MSTR) has finalized the pricing for its private offering of $2.6 billion in convertible senior notes, set to mature on December 1, 2029. This marks a significant increase from the originally announced $1.75 billion offering.

Key details of the offering include:

• Zero interest and no accretion: The notes won’t accrue regular interest or increase in principal amount over time.
• Conversion options: The notes can be converted into cash, MicroStrategy Class A common stock, or a combination of both, as decided by the company. The initial conversion rate is 1.4872 shares per $1,000 of principal, equating to a conversion price of approximately $672.40 per share.
• Optional expansion: Initial purchasers have a three-day window to acquire an additional $400 million in notes.

MicroStrategy anticipates raising $2.58 billion in net proceeds, or up to $2.97 billion if the full option is exercised. These funds will primarily be used to expand its Bitcoin holdings and support general corporate initiatives.

This announcement fueled a 5% increase in MSTR shares during premarket trading on Wednesday. The offering underscores the company’s continued confidence in Bitcoin as a long-term asset strategy.