- MicroStrategy announced its offering of $600 million in convertible notes.
- The firm will use the proceeds to buy more Bitcoin.
- Maturity date for the notes is set for February 15, 2027.
Additionally, the business intelligence firm says that initial buyers will get the opportunity to buy a further $90 million worth of notes as well. Thus, bringing its total offer up to $690 million.
MicroStrategy’s offer to allow buyers to purchase the additional $90 million comes with some extra conditions. For one, buyers have a 13-day window to make their additional purchase. That is, starting from the date on the first set of notes bought.
Furthermore, the offering, like most others, is subject to the market and similar conditions. Thus, there is no guarantee on if and when the terms of the offering will be met.
The notes will mature as planned on February 15, 2027. Unless, they are repurchased before their due date. Early redemption or conversion within the notes’ stated terms could also change the due date and terms of the notes’ maturity.
In accordance with the conditions, MicroStrategy will redeem the notes fully or partially for cash on or after February 20, 2024. There are three ways to redeem the notes. Firstly, by converting it to cash. Secondly, converting it to shares of MicroStrategy’s class A common stock. Thirdly, conversion in a combination of both the above options.
Moreover, redeeming the notes prior to its due date can only be possible if certain events are met. Additionally, certain terms are set at the time of pricing the offer. These include conversion rate, interest rate, conversion price, and more.
MicroStrategy aims to use the net proceeds from the sales of these offerings to further obtain more Bitcoin.