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MicroStrategy has increased the issuance scale of zero-interest convertible senior notes to 2.6 billion US dollars, part of the net proceeds will be used to purchase Bitcoin

MicroStrategy has increased the issuance scale of zero-interest convertible senior notes to 2.6 billion US dollars, part of the net proceeds will be used to purchase Bitcoin

Bitget2024/11/20 13:24

According to an announcement on MicroStrategy's official website, MicroStrategy has announced the pricing of its $2.6 billion principal amount of zero-interest convertible preferred notes due in 2029, an increase from the previously announced issuance size of $1.75 billion. The issuance is expected to be completed by November 21, 2024, subject to customary closing conditions.

The initial conversion rate for the notes is 1.4872 shares of MicroStrategy Class A common stock per $1,000 principal amount note, equivalent to an initial conversion price of approximately $672.40 per share. This initial conversion price represents a premium of about 55% over the volume-weighted average price (VWAP) ($433.7997) for MicroStrategy Class A common stock between 1:30 p.m and 4:00 p.m Eastern Standard Time on November 19th, 2024.The conversion rate will be adjusted upon certain events.

MicroStrategy estimates that after deducting discounts and commissions for initial purchasers as well as estimated issuing costs payable by MicroStrategy itself,the net proceeds from selling these notes will be around $2.58 billion (or approximately $2.97 billion if the initial purchasers fully exercise their option to purchase additional notes).Microstrategy intends to use these net proceeds from this offering to buy more Bitcoin and for general corporate purposes.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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