MicroStrategy announced plans on Thursday to offer qualified institutional buyers the opportunity to purchase unsecured convertible senior notes due in 2032. The private offering, contingent upon market conditions and other factors, will involve notes bearing interest payable semi-annually on June 15 and December 15 each year until maturity, unless repurchased, redeemed, or converted under the terms of the offering.MicroStrategy may, under certain conditions, redeem some or all of the notes for cash. Holders of the notes will also have the option to require MicroStrategy to repurchase all or part of their notes on June 15, 2029.The proceeds from this offering will fund MicroStrategy's initiative to acquire more Bitcoin, adding to its existing holdings of 214,400 BTC as of April 30, 2024. Notes issued can be converted into cash, shares of the company's class A common stock, or a combination of both, with the initial conversion price based on the composite volume-weighted average of MicroStrategy's stock from 9:30 am to 4:00 pm EDT on the pricing date.
