The world’s biggest publicly traded business intelligence company, MicroStrategy, recently disclosed plans of investing the proceeds from a $400 million securities offering into buying more bitcoins.
In a report credited to BusinessWire, a Berkshire Hathaway company known for a spot on press releases and regulatory information, specific details were released on the timing of the bond instrument and specifics.
What you should know
- The notes will be unsecured and will bear interest payable semi-annually in arrears on June 15 and December 15 of each year, beginning on June 15, 2021.
- The notes will mature on December 15, 2025, unless earlier repurchased, redeemed or converted in accordance with their terms. Subject to certain conditions, on or after December 20, 2023, MicroStrategy may redeem for cash all or a portion of the notes.
- The notes will be convertible into cash, shares of MicroStrategy’s class A common stock, or a combination of cash and shares of MicroStrategy’s class.
- Prior to June 15, 2025, the notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter, at any time until the second scheduled trading day immediately preceding the maturity date.
- The interest rate, conversion rate, conversion price, and certain other terms of the notes will be determined at the time of pricing of the offering.
Access financial data on the Nairametrics Research Website
What MicroStrategy is saying
MicroStrategy further revealed plans to issue $400 million in convertible senior notes debt security that can be converted into the issuing company’s stocks. The announcement stated:
“MicroStrategy intends to invest the net proceeds from the sale of the notes in Bitcoin.”
Nairametrics also revealed how, Michael Saylor, the CEO of publicly listed American business analytics firm, MicroStrategy, had announced the company’s latest Bitcoin holdings via his Twitter Feed.
“MicroStrategy has purchased approximately 2,574 bitcoins for $50.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $19,427 per bitcoin. We now hold approximately 40,824 bitcoins.”
- MicroStrategy is the biggest independent publicly-traded business intelligence company, with the leading enterprise analytics platform.
- MicroStrategy generates modern analytics on an open, comprehensive enterprise platform used by many of the world’s most admired brands in the Fortune Global 500.
- Optimized for cloud and on-premises deployments, the platform features HyperIntelligence, a breakthrough technology that overlays actionable enterprise data on popular business applications to help users make smarter, faster decisions.