MicroStrategy prices $700M convertible debt offering

MicroStrategy ( NASDAQ: MSTR ) has priced its private offering of $700M aggregate principal amount of convertible senior notes due 2032. The sale was upsized from the previously announced offering of $500M aggregate principal amount of notes. The initial purchasers of the notes have been granted a 13-day option to purchase up to an additional $100M of the notes. The notes will be unsecured, senior obligations of MicroStrategy ( MSTR ), and will bear interest at a rate of 2.25% per annum, payable semi-annually. They will be convertible into cash, shares of MicroStrategy’s class A common stock, or a combination of cash and shares at the company’s election. The conversion rate for the notes will be equivalent to an initial conversion price of approximately $2,043.32 per share. The notes will mature on June 15, 2032, unless earlier repurchased, redeemed or converted in accordance with their terms. The offering is expected to close on June 17, 2024, subject to satisfaction of customary closing conditions. Net proceeds are estimated to be approximately $687.8M, or $786M if the initial purchasers exercise in full their option to purchase additional notes. The company plans to use these proceeds to acquire additional bitcoin and for general corporate purposes. Shares of MicroStrategy ( MSTR ) closed with a 7% dip on Thursday, and were up 2.1% premarket on Friday More on MicroStrategy MicroStrategy: Dangerous Stock, Sell All Rallies (Technical Analysis) MicroStrategy: Stretched Bitcoin Bet MicroStrategy Is A Buy If You Can Stomach High Volatility MicroStrategy to redeem 0.750% convertible senior notes due 2025, offers new notes Biggest stock movers today: Crypto stocks, TH, DXC, YEXT, and more