According to the official press release issued by MicroStrategy, the company plans to privately issue $500 million in convertible bonds to qualified institutional buyers, with a maturity date of June 15, 2032. Interest will be paid semi-annually on June 15th and December 15th each year. The bonds can be converted at maturity into cash, MicroStrategy Class A common stock, or a combination of both, at the company’s discretion.
Furthermore, MicroStrategy also anticipates offering initial purchasers an option to buy up to an additional $75 million in bonds within 13 days of the bond’s initial issuance. The issuance is subject to market and other conditions, and there is no guarantee on whether, when, or under what terms the issuance will be completed.
MicroStrategy stated that it will use the net proceeds from the bond sale to purchase more Bitcoin and for general corporate purposes. The company has been funding large Bitcoin acquisitions through the issuance of convertible bonds over the years. In March this year, after completing a $600 million convertible bond issuance, MicroStrategy immediately announced the additional purchase of 9,245 Bitcoins worth $623 million, using all the net proceeds from the convertible bond issuance.
As of now, MicroStrategy holds a total of 214,400 Bitcoins, valued at approximately $14.4 billion.
