Business intelligence company MicroStrategy is offering convertible senior notes worth $550 million to investors. In an published on the 9th of December, the company said that only qualified buyers in accordance with the Securities Act of 1933, Rule 144A, will have access to the private offering.
As noted by the company, the offering’s net proceeds are estimated at $537.2 million, apart from expenses and discounts. The company also plans to use the net proceeds to acquire more Bitcoin. Already, MicroStrategy has bought large amounts of BTC on three occasions. The company’s CEO Michael Saylor revealed in a recent that the company now holds about 40,824 BTC.
Stating its plans to purchase more Bitcoin with the net proceeds from the offering, MicroStrategy added in the announcement that the proposed acquisition of BTC is “in accordance with its Treasury Reserve Policy pending the identification of working capital needs and other general corporate purposes.”
The announcement further stated that the notes would grow by 0.750% annually. Also, the interest is payable twice a year, on the 15th of June and the 15th of December, starting from the 15th of June of the coming year.
In addition, investors can convert their notes into cash, MicroStrategy’s class A common shares, or a combination of the shares and cash. Initially, the conversion price would be $397.99 per share.