MicroStrategy to Issue $2.6 Billion in Convertible Senior Notes, Proceeds to Purchase Bitcoin

BlockBeats News, November 20, MicroStrategy announced that it will issue $2.6 billion in senior convertible notes and will use the proceeds to purchase Bitcoin. This issuance size is larger than the previously announced $1.75 billion principal amount of the notes, and the issuance is expected to close on November 21, 2024.

These notes will be MicroStrategy's unsecured senior debt, will not bear regular interest, and the principal amount of the notes will not accrete. Unless redeemed, repurchased, or converted pursuant to their terms, the notes will mature on December 1, 2029. On or after December 4, 2026, MicroStrategy may redeem all or any portion of the notes for cash at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid special interest.