MicroStrategy to redeem $1.05b senior notes
MicroStrategy, Bitcoin’s largest corporate holder, announced plans to repurchase all outstanding 0% convertible senior notes in 2027, totaling approximately $1.05 billion.
THE redemption is set for February 24, 2025, at 100% of the principal amount, plus any accrued interest. Noteholders have until February 20, 2025 to convert their notes into shares of MicroStrategy’s Class A common stock at a rate of 7.0234 shares per $1,000 principal amount. This equates to a conversion price of $142.38 per share.
This decision is important, given Microstrategy substantial investment in bitcoin (BTC). Since August 2020, under the leadership of the Executive Chairman Michael SaylorThe company adopted bitcoin as its primary cash reserve asset, citing concerns about falling cash yields and a weakened dollar.
Microstrategy holds approximately 461,000 Bitcoins, making it the largest corporate cryptocurrency holder.
Convertible senior notes are debt instruments that allow investors to exchange their holdings for a predetermined number of shares. By exchanging these notes, MicroStrategy aims to more effectively manage its debt obligations, potentially reduce interest expenses and limit dilution to existing shareholders.
MicroStrategy’s planned repurchase of its convertible senior notes aligns with its broader financial strategyemphasizing a strong commitment to bitcoin as a central component of its corporate treasury.
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