Michael Saylor’s MicroStrategy Plans Another $700M Convertible Note Issuance

Nasdaq-listed
bitcoin
development
firm
MicroStrategy
(MSTR)

announced
Monday
that
it
intends
to
offer
$700
million
aggregate
principal
amount
of
convertible
senior
notes
due
2028.

The
company
plans
to
use
the
proceeds
of
the
offering
to
redeem
$500
million
worth
of
senior
secured
notes
with
6.125%
annual
yield
maturing
in
2028,
the
press
release
said.
It
will
use
the
rest
of
the
proceeds
to
purchase
more
bitcoin

(BTC)
and
for
general
corporate
uses.

The
firm
also
plans
to
grant
to
the
initial
purchasers
of
the
notes
an
option
to
buy
up
to
an
additional
$105
million
aggregate
principal
amount
of
notes
within
a
13-day
period
starting
on
the
issuance
date
of
the
first
notes.
The
company
said
it
may
redeem
for
cash
all
or
a
portion
of
the
notes
on
or
after
December
20,
2027,
subject
to
certain
conditions.

Recently,
other
public
companies
such
as

Semler
Scientific
and
Japanese
investment
adviser

Metaplanet
have
followed
MicroStrategy’s
footprints
to
issue
debt
to
accumulate
bitcoin.

MSTR
shares
slid
4.9%
during
regular
trading
today
alongside
a
sizable
decline
in
the
price
of
bitcoin.
Shares
are
down
another
1.6%
in
after
hours
trading.
They
remain
higher
by
about
300%
on
a
year-over-year
basis.