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

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.