Summary by Moomoo AI
MicroStrategy Incorporated, a company specializing in business intelligence, mobile software, and cloud-based services, has successfully completed a private offering of convertible senior notes due in 2028, raising $1.01 billion. The offering, which concluded on September 19, 2024, included a 0.625% coupon and a 40% conversion premium. The company plans to use $523.8 million of the proceeds to fully redeem its 6.125% Senior Secured Notes due 2028 on September 26, 2024. This redemption will also release collateral securing the notes, including approximately 69,080 bitcoins valued at $4.4 billion. MicroStrategy's total indebtedness post-offering and redemption will stand at $4.274 billion, with an annual interest expense of $34.6 million. Additionally, between September 13 and September 19, 2024, MicroStrategy acquired approximately 7,420 bitcoins for $458.2 million, bringing its total holdings to approximately 252,220 bitcoins with an average purchase price of $39,266 per bitcoin. The company also reported a BTC Yield of 5.1% for the third quarter and 17.8% year-to-date, a KPI used to assess the performance of its bitcoin acquisition strategy.
