MicroStrategy plans to issue $500 million in convertible senior notes maturing in 2032 to fund additional Bitcoin purchases.

This private offering, aimed at qualified institutional buyers, aims to strengthen the company's resources amid market volatility.

As of June 13, MicroStrategy owns over 1% of BTC’s circulating supply, amounting to 214,400 BTC, worth around $15 billion.

Offering details

MicroStrategy will allow initial purchasers to acquire an additional $75 million in notes within 13 days of issuance. These unsecured convertible senior notes will mature on June 15, 2032, with semi-annual interest payments starting December 15, 2024.

The company retains the option to redeem the notes for cash, in full or in part, after June 29, 2029, under certain conditions, providing financial management flexibility.

Investors can convert the notes into cash, MicroStrategy’s class A common stock, or a combination of both. The conversion terms, including rate and price, will be determined upon pricing the offering.

The offering and any resulting conversion shares of MicroStrategy’s class A common stock will not be registered under the Securities Act or state securities laws, and thus cannot be offered or sold in the US without registration or an applicable exemption.

MicroStrategy will use the proceeds to enhance its Bitcoin investment and address general corporate purposes, aligning with Chair Michael Saylor’s commitment to the asset.