**MicroStrategy Inc. Completes $3 Billion Offering of Convertible Senior Notes Due 2029**

On November 21, 2024, MicroStrategy Incorporated (NASDAQ: MSTR) successfully finalized a private offering of 0% convertible senior notes due 2029. The transaction, as detailed in a recent 8-K filing, involved the sale of notes under a purchase agreement with Barclays Capital Inc., acting as the representative of the Initial Purchasers. The offering totaled $3 billion, inclusive of an additional $400 million from the exercise of an option by the Initial Purchasers.

Upon completion of the offering, the net proceeds amounted to approximately $2.97 billion after accounting for discounts, commissions, and associated offering expenses. MicroStrategy intends to allocate these funds towards acquiring additional Bitcoin and for general corporate purposes.

The notes are covered under an indenture with U.S. Bank Trust Company, National Association, as trustee. Chalked down as senior unsecured obligations, the notes offer conversion into MicroStrategy’s class A common stock at an initial rate of 1.4872 shares per $1,000 principal amount of notes, equivalent to a starting conversion price of around $672.40 per share.

Notably, prior to December 4, 2026, the redemption of these notes by the company is restricted, with further conditions set regarding conversions and potential buybacks. Holders of the notes have the option to require MicroStrategy to repurchase their notes on specific dates at predetermined prices, subject to underlying conditions as outlined in the indenture agreement.

The Company also disclosed the issuance of a press release on November 21, 2024, affirming the completion of the notes offering. MicroStrategy advised caution regarding forward-looking statements enclosed in the report, emphasizing its commitment to updated disclosures if necessary.

The offering was crafted to align with regulations, offering the notes solely to qualified institutional buyers under Rule 144A and certain non-U.S. individuals in compliance with Regulation S under the Securities Act of 1933. Furthermore, MicroStrategy doesn’t plan to register the notes or underlying shares for resale in the United States at the moment.

This strategic financial move comes as MicroStrategy continues to solidify its position as a prominent figure in advocating for Bitcoin as an essential treasury reserve asset. The company’s innovative approach to including Bitcoin in its corporate strategy, coupled with its technology solutions, marks MicroStrategy as a unique player in the analytics and digital asset sectors, promising long-term value creation for investors.

The information provided in this article is based on the recent 8-K filing by MicroStrategy Incorporated with the United States Securities and Exchange Commission.

*Please note: This article does not constitute investment advice and is solely for informational purposes.*

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This text has been created for illustrative purposes based on the provided 8-K SEC filing information.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read MicroStrategy’s 8K filing here.

About MicroStrategy

MicroStrategy Incorporated provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally. It offers MicroStrategy ONE, which provides non-technical users with the ability to directly access novel and actionable insights for decision-making; and MicroStrategy Cloud for Government service, which offers always-on threat monitoring that meets the rigorous technical and regulatory needs of governments and financial institutions.