According to the official press release issued by MicroStrategy, the company plans to issue a total of $500 million in convertible bonds to qualified institutional buyers in a private placement. The bonds will mature on June 15, 2032, with interest payments semi-annually on June 15 and December 15. The bonds will be convertible at maturity into cash, MicroStrategy Class A common stock, or a combination of both, at the company’s discretion.
Additionally, MicroStrategy also anticipates offering initial purchasers an option to purchase up to an additional $75 million in bonds within 13 days of the initial issuance. The completion of this offering is subject to market and other conditions and there is no guarantee as to whether, when, or under what terms the offering will be completed.
MicroStrategy stated that the net proceeds from the bond sale will be used to acquire more Bitcoin as well as for general corporate purposes. Over the years, MicroStrategy has been raising funds through convertible bond offerings to fund significant Bitcoin purchases. In March of this year, shortly after completing a $600 million convertible bond offering, the company announced the additional acquisition of 9,245 Bitcoins worth $623 million, effectively investing all the net proceeds from the convertible bond offering into Bitcoin.
As of now, MicroStrategy holds a total of 214,400 Bitcoins, with an approximate total value of $14.4 billion.