MicroStrategy, the publicly traded company leading the accumulation of bitcoin (BTC) as a reserve, continues to strengthen its investment strategy in the digital currency.
Under the direction of its founder and CEO, Michael Saylor, the company maintains very bullish expectations about the future of bitcoin, which has led it to implement a treasury policy focused on acquiring more BTC units. According to Saylor, bitcoin is the best option to preserve value in the long term, especially in an environment of global economic uncertainty.
In a statement released on November 18, 2024, MicroStrategy announced its intention to conduct a private offering of senior convertible notes in the aggregate principal amount of $1.75 billion.
These notes, due 2029, will be offered to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and to certain international investors pursuant to Regulation S.
The Window
“MicroStrategy intends to use the net proceeds from this offering to acquire additional bitcoin and for general corporate purposes,” the statement said.
The Company also reserves the right to grant the initial purchasers an option to purchase up to an additional $250 million of notes within three days of the initial issuance.
The convertible notes, which will not bear regular interest or increase in principal value, will mature on December 1, 2029, but may be redeemed or converted at an earlier date into cash, MicroStrategy Class A shares, or a combination of both, at the Company's option.
Additionally, beginning in 2026, MicroStrategy will be able to redeem some or all of the notes, provided that at least $75 million of the notes remain outstanding.
“The initial conversion rate and other terms of the notes will be determined at the time of pricing the offering,” the statement said. The company anticipates that the reference price for the initial calculation will be the volume-weighted average of the price of its Class A shares in the U.S. market on the day the offering is priced.
This announcement reaffirms MicroStrategy's commitment to bitcoin as a pillar of its financial strategy. The company led by Saylor announced a recent purchase of more than $4 billion in bitcoin and already has a total of 331,200 BTC.
