MicroStrategy to Acquire $500 Million More in Bitcoin

MicroStrategy has announced its plan to issue $500 million in convertible senior notes, set to mature in 2032. This private offering, available to qualified institutional buyers, will comply with Rule 144A of the Securities Act of 1933 and is “subject to market conditions and other factors.”

The company stated, “The notes will be unsecured senior obligations of MicroStrategy, bearing interest payable semi-annually on June 15 and December 15 each year, starting December 15, 2024. They will mature on June 15, 2032, unless repurchased, redeemed, or converted earlier per their terms.”

As per a press release, the net proceeds from this offering will mainly be used to acquire more Bitcoin and for “general corporate purposes.” Despite market conditions, this strategy aligns with MicroStrategy’s long-term objective of utilizing Bitcoin as its treasury reserve asset. The firm also plans to grant initial purchasers of the notes an option to buy an additional $75 million in “aggregate principal amount of the notes.”

“If MicroStrategy redeems fewer than all outstanding notes, at least $75 million in aggregate principal amount of notes must remain outstanding and not subject to redemption as of the relevant redemption notice date,” the press release further explained.

The release also stated, “The interest rate, initial conversion rate, and other terms of the notes will be determined at the time of pricing of the offering.” The reference price used to calculate the initial conversion price will be the U.S. composite volume-weighted average price of MicroStrategy’s class A common stock from 9:30 am to 4:00 pm EDT on the pricing date.

According to the press release, the notes will be offered and sold to qualified purchasers under Rule 144A of the Securities Act of 1933. Consequently, these convertible senior notes and any convertible shares of MicroStrategy’s class A common stock will not be registered under the Securities and Exchange Commission (SEC). This means they cannot be traded in public markets without fulfilling specific legal conditions.

Join Our New ReadySetCrypto Platform!

Join our new interactive, community-driven ReadySetCrypto platform!

What we’ve found is that the Crypto market moves too quickly to support a TradFi portfolio-based market.

The Crypto market is all about identifying opportunities AS THEY OCCUR, and understanding precisely when to enter, and most importantly, when to exit.

ReadySetCrypto has been re-engineered to help you identify these opportunities as they occur with clear, time-tested price-based signals.

Better yet, you can convert your account to this new service for the same price (or probably less) than what you’re paying now.

You can check it out for free for a week by signing up at readysetcrypto.ONE, where you can access the new site either on your workstation, or on a new mobile app by installing the Mighty Network app on Android or Apple.

If you’d like to convert your account, please let us know by contacting us at support (at) readysetcrypto.tempurl.host

We’ll take care of ensuring that your old subscription is closed down, and that we match (or improve) your monthly subscription rate. Annual rates are also available for a significant discount.

Convert your account today and let’s make this new year an amazing one!

Sincerely….your team at ReadySetCrypto