Summary by Moomoo AI
On September 19, 2024, MicroStrategy Incorporated completed its offering of 0.625% convertible senior notes due 2028, raising $1.01 billion, which includes $135 million from an option exercised by initial purchasers. The net proceeds, after discounts, commissions, and expenses, amounted to approximately $997.4 million. The company plans to use these funds to redeem all $500 million of its 6.125% Senior Secured Notes due 2028 and to purchase additional bitcoin and for general corporate purposes. The redemption of the Senior Secured Notes is set for September 26, 2024, and will release approximately 69,080 bitcoins used as collateral. The notes, which mature on September 15, 2028, are convertible into MicroStrategy's class A common stock at an initial rate of 5.4589 shares per $1,000 principal amount, representing a 40% premium over the stock's volume weighted average price as of September 17, 2024. The offering was made to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended.
