MicroStrategy announced on Friday it had completed a $1.01 billion offering of convertible senior notes.
The company plans to use the proceeds to repay debt and purchase more Bitcoin, solidifying its strategy of using cryptocurrency as a primary reserve asset. The funds will be allocated to redeem MicroStrategy’s existing senior secured notes and to buy additional Bitcoin, reinforcing its approach of holding crypto as a core element of its treasury reserves.
These notes can be converted into cash, MicroStrategy’s class A common stock, or a combination of both, depending on the company’s preference.
The company confirmed that the convertible notes will mature in September 2028 and carry an interest rate of 0.625% per year, payable semi-annually.