MicroStrategy plans to issue $500 million in convertible senior notes due in 2032 to fund additional Bitcoin acquisitions. This private offering targets qualified institutional buyers and aims to strengthen the company's financial resources amid volatile market conditions.

As of June 13, MicroStrategy holds more than 1% of Bitcoin's circulating supply, totaling 214,400 BTC valued at around $15 billion.

Details of the offering include an option for initial purchasers to acquire an additional $75 million in notes within 13 days of issuance. The convertible senior notes will be unsecured and will mature on June 15, 2032, with semi-annual interest payments starting on December 15, 2024.

MicroStrategy retains the right to redeem the notes for cash, in full or in part, after June 29, 2029, under specific conditions to manage its financial flexibility.

Investors can convert the notes into cash, MicroStrategy's class A common stock, or a combination thereof, offering a flexible financial instrument aligned with the company's growth and investment strategy. The conversion terms, including the rate and price, will be determined at the time of the offering's pricing.

The offering and any subsequent conversion shares of MicroStrategy's class A common stock will not be registered under the Securities Act or state securities laws, limiting their sale in the US without registration or an applicable exemption.

Proceeds from the offering will be used to expand MicroStrategy's Bitcoin holdings and support general corporate purposes, consistent with Chair Michael Saylor's commitment to the asset.