MicroStrategy has announced that it will offer a $500M convertible senior note to purchase additional bitcoins

Business intelligence firm and long-time bitcoin owner MicroStrategy announced in 2016 that It announced plans to issue $500 million in aggregate convertible senior notes in 2032.

Interestingly, the proceeds of this initiative will be used to purchase more bitcoins and other corporate purposes.

According to the official announcement, the NASDAQ-listed company intends to offer the initial purchasers of the notes an option to purchase up to a principal amount of $75 million within 13 days from the date of issuance.

The notes in question will be unsecured senior obligations of the Company with interest payable on June 15 and December 15 of each year beginning December 15, 2024.

The notes will mature on June 15, 2032 unless repurchased, redeemed or earlier converted. Beginning on June 20, 2029, MicroStrategy may redeem all or a portion of the Notes for cash as long as at least $75 million of the principal amount of the Notes remains outstanding on the Notice Date.

On June 15, 2029, Microstrategy may request that you redeem any portion of your Notes for cash. In addition, the Notes may be converted into cash, MicroStrategy Class A common stock, or a combination of both at the Company's discretion.

Microstrategy also said that until December 15, 2031, the notes will change only when certain events occur and during certain periods. After this date, they will change at any time until the second scheduled trading day before the expiration date.

“The interest rate, initial conversion rate and other terms of the notes will be determined at the time of issuance. The reference price used by MicroStrategy to calculate the initial conversion price of the Notes is expected to be the weighted average price of MicroStrategy's units in the US.