MicroStrategy To Issue Debt To Buy Bitcoin For A Second Time In Two Weeks

MicroStrategy (NASDAQ: MSTR) is looking to issue more debt just days after completing an $800 million convertible debt offering of senior notes, with the intent of buying even more bitcoin.

The tech company last night after the bill indicated it is aiming to sell a further $500 million in convertible senior notes to institutional buyers. The new notes are slated to be due in 2031, with interest payable semi annually. Pricing of the notes has yet to be provided. An over-allotment option of $75 million is also attached to the offering.

The notes are expected to be convertible into cash or shares at MicroStrategy’s discretion.

Proceeds from the debt issuance are to be used for the purchase of additional bitcoin.

The debt issuance notably follows the company issuing $800 million in 0.625% convertible senior notes due 2030 earlier this week. Those notes contain a conversion rate of 0.6677 class A shares per $1,000 principal amount of notes, a 42.5% premium to the closing price of MSTR at the time of the financing closing. That offering resulted in net proceeds of $782.0 million, which was immediately used to purchase more bitcoin.

MicroStrategy last traded at $1,766.15 on the Nasdaq.


Information for this briefing was found via Edgar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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