MicroStrategy announced the pricing of its $875 million convertible senior notes offering, which is expected to be completed on September 19

ChainCatcher news, MicroStrategy announced the pricing of its $875 million convertible senior notes due in 2028, an increase from the previously announced $700 million total principal amount of the notes. These notes will be MicroStrategy's unsecured senior debt, with an interest rate of 0.625% per annum, payable semi-annually on March 15 and September 15, starting from March 15, 2025.

The notes will be sold in a private placement to qualified institutional buyers, and MicroStrategy has also granted the initial purchasers of the notes an option to purchase up to $135 million in total principal amount of the notes within 13 days from the date of the initial issuance of the notes. Additionally, the offering is expected to close on September 19, 2024, subject to customary closing conditions.

MicroStrategy intends to use the net proceeds from this offering to redeem all $500 million in outstanding principal amount of its 6.125% senior secured notes due 2028 ("Senior Secured Notes") and any remaining net proceeds for the purchase of additional Bitcoin and for general corporate purposes.