MicroStrategy Completes $3 Billion Convertible Note Offering Due 2029

According to Foresight News, MicroStrategy has successfully completed the issuance of $3 billion in convertible senior notes due in 2029. These notes carry a 0% coupon rate and a conversion premium of 55%. The issuance includes an additional $400 million in principal amount of notes, which were offered as part of an option granted to initial purchasers under the note purchase agreement. This option was fully exercised by the initial purchasers on November 20, 2024, with the additional purchase finalized on November 21, 2024. These notes are classified as unsecured senior debt of MicroStrategy. They do not accrue interest periodically, nor does the principal amount increase over time. The notes are set to mature on December 1, 2029, unless they are repurchased, redeemed, or converted earlier in accordance with their terms. This financial move by MicroStrategy reflects its strategic approach to managing its capital structure and leveraging convertible debt instruments to potentially enhance its financial flexibility and growth opportunities.