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MicroStrategy has finalized a $3 billion offering of zero-interest convertible senior notes, with plans to use the proceeds to acquire additional Bitcoin and for other corporate needs.
The notes, which mature in December 2029, were sold in a private offering to institutional investors.
The offering included an additional $400 million worth of notes purchased by investors shortly after the initial sale. These notes are convertible into cash, shares of MicroStrategy’s Class A common stock, or a mix of both, depending on the company’s choice. The initial conversion price of $672.40 per share reflects a 55% premium over the company’s stock price on November 19, 2024.
MicroStrategy, led by Executive Chairman Michael Saylor, has been a major proponent of Bitcoin, regularly investing heavily in the cryptocurrency. This latest move further solidifies its position as one of the largest institutional Bitcoin holders.
The funds raised will not only expand MicroStrategy’s Bitcoin portfolio but also support its general business operations. However, the offering comes with no registration under U.S. securities laws, limiting its availability to select buyers through private channels.
This significant investment reaffirms MicroStrategy’s commitment to Bitcoin as a central part of its corporate strategy.
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