MicroStrategy Announcing Private $400 Million Offering of Convertible Senior Notes for Bitcoin

(Last Updated on December 7, 2020)

Michael Saylor just announced a giant private offering of convertible senior notes that will be used to purchase MORE Bitcoin..

Is this guy ridiculously bullish on the corn or what..?

December. 7th, 2020 MicroStrategy Inc(Nasdaq: MSTR) today declared that it will offer, dependent on market conditions and other variables, $400 million total principal amount of convertible senior notes expiring in 2025. This will be a private offering to qualified institutional buyers – compliant with Rule 144A under the Securities Act of 1933. $MSTR will give an option for initial purchasers of the notes an option to purchase, within a 13-day period beginning on, and including, the date on which the notes are first issued, up to an increased $60 million aggregate principal cost.

The notes will be used to buy Bitcoin!

“The notes will be unsecured, senior obligations of MicroStrategy and will bear interest payable semi-annually in arrears on June 15 and December 15 of each year, beginning on June 15, 2021. The notes will mature on December 15, 2025, unless earlier repurchased, redeemed or converted in accordance with their terms. Subject to certain conditions, on or after December 20, 2023, MicroStrategy may redeem for cash all or a portion of the notes. The notes will be convertible into cash, shares of MicroStrategy’s class A common stock, or a combination of cash and shares of MicroStrategy’s class A common stock, at MicroStrategy’s election. Prior to June 15, 2025, the notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the second scheduled trading day immediately preceding the maturity date. The interest rate, conversion rate, conversion price and certain other terms of the notes will be determined at the time of pricing of the offering.

MicroStrategy intends to invest the net proceeds from the sale of the notes in bitcoin in accordance with its Treasury Reserve Policy pending the identification of working capital needs and other general corporate purposes.

MicroStrategy Press Release December 7th, 2020

What is a convertible senior note?

A senior convertible note is a debt security that contains an option in which the note will be converted into a predefined amount of the issuer’s shares.

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