MicroStrategy Eyes $1.75 Billion Bond Sale to Boost Bitcoin Holdings

MicroStrategy (MSTR) said Monday it planned to offer $1.75 billion in 0% convertible senior notes due 2029 through a private offering to qualified institutional buyers and certain non-US persons. The company plans to use the proceeds to acquire additional bitcoin (BTC) and for general corporate purposes, the largest corporate holder of bitcoin said in a statement. The offering includes a 3-day option for initial purchasers to buy up to $250 million in additional notes, subject to market conditions and other factors, it said. The notes, unsecured senior obligations, will mature on Dec. 1, 2029, unless earlier repurchased, redeemed, or converted, with partial cash redemption allowed from Dec. 4, 2026, requiring at least $75 million in outstanding notes. MicroStrategy said that noteholders will have the right to require MicroStrategy to repurchase for cash all or any portion of their notes on June 1, 2028, and that the notes are convertible into cash, class A common stock, or both, based on the company's election. On Monday, MicroStrategy said that it had purchased 51,780 bitcoins for $4.6 billion over six days ending Sunday, bringing its total holdings to 331,200 BTC.