MicroStrategy Plans $700 Million Convertible Note Offering to Boost Bitcoin Holdings

MicroStrategy, a prominent enterprise analytics and Bitcoin investment firm, has revealed plans to issue $700 million in convertible senior notes due in 2028 through a private placement.

This move is designed to attract institutional investors under Rule 144A of the Securities Act.

An additional $105 million in notes may be purchased by initial buyers within 13 days of the primary offering.

These unsecured senior notes will offer semiannual interest payments starting March 2025 and will mature in September 2028, with options for early redemption, repurchase, or conversion.

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The notes can be converted into cash, shares of MicroStrategy’s Class A common stock, or a combination of both, based on market conditions. Redemption options will be available starting in late 2027.

The proceeds from this offering will be used to redeem $500 million of existing senior secured notes and to acquire additional Bitcoin or support other corporate initiatives.

Alexander Stefanov