Strategy Announces Pricing of Offering of $2.0 Billion of Convertible Senior Notes
Strategy (MSTR) has announced the pricing of $2.0 billion convertible senior notes due 2030 in a private offering to qualified institutional buyers. The notes will be senior, unsecured obligations with 0% regular interest and will mature on March 1, 2030.
The initial conversion rate is 2.3072 shares of class A common stock per $1,000 principal amount, representing a conversion price of approximately $433.43 per share - a 35% premium over the weighted average price of $321.0514. The company expects net proceeds of approximately $1.99 billion, which will be used for general corporate purposes, including bitcoin acquisition and working capital.
The notes include provisions for early conversion, redemption after March 5, 2027, and repurchase rights for noteholders in case of a fundamental change. An additional option for purchasers to acquire up to $300 million in notes has been granted.
Strategy (MSTR) ha annunciato il prezzo di 2,0 miliardi di dollari di obbligazioni convertibili senior scadenti nel 2030 in un'offerta privata a compratori istituzionali qualificati. Le obbligazioni saranno obbligazioni senior, non garantite, con un 0% di interesse regolare e scadranno il 1° marzo 2030.
Il tasso di conversione iniziale è di 2,3072 azioni di azioni ordinarie di classe A per ogni 1.000 dollari di valore nominale, rappresentando un prezzo di conversione di circa 433,43 dollari per azione - un premio del 35% rispetto al prezzo medio ponderato di 321,0514 dollari. L'azienda prevede di ottenere proventi netti di circa 1,99 miliardi di dollari, che saranno utilizzati per scopi aziendali generali, inclusi l'acquisizione di bitcoin e il capitale circolante.
Le obbligazioni includono disposizioni per la conversione anticipata, il rimborso dopo il 5 marzo 2027 e i diritti di riacquisto per i detentori di obbligazioni in caso di un cambiamento fondamentale. È stata concessa un'opzione aggiuntiva per gli acquirenti di acquisire fino a 300 milioni di dollari in obbligazioni.
Strategy (MSTR) ha anunciado el precio de 2,0 mil millones de dólares en notas senior convertibles con vencimiento en 2030 en una oferta privada para compradores institucionales calificados. Las notas serán obligaciones senior, no garantizadas, con un 0% de interés regular y vencerán el 1 de marzo de 2030.
La tasa de conversión inicial es de 2.3072 acciones de acciones comunes de clase A por cada 1.000 dólares de monto principal, lo que representa un precio de conversión de aproximadamente 433,43 dólares por acción - un 35% de prima sobre el precio promedio ponderado de 321,0514 dólares. La empresa espera obtener ingresos netos de aproximadamente 1,99 mil millones de dólares, que se utilizarán para fines corporativos generales, incluida la adquisición de bitcoin y el capital de trabajo.
Las notas incluyen disposiciones para la conversión anticipada, la redención después del 5 de marzo de 2027 y los derechos de recompra para los tenedores de notas en caso de un cambio fundamental. Se ha otorgado una opción adicional para que los compradores adquieran hasta 300 millones de dólares en notas.
Strategy (MSTR)는 2030년 만기인 20억 달러의 전환 가능한 선순위 채권의 가격을 자격을 갖춘 기관 투자자에게 비공식적으로 발표했습니다. 이 채권은 0%의 정기 이자를 가진 선순위 비담보 의무이며 2030년 3월 1일에 만기가 됩니다.
초기 전환 비율은 2.3072주의 A급 보통주당 1,000달러의 원금에 대해 약 433.43달러의 전환 가격을 나타내며, 이는 321.0514달러의 가중 평균 가격에 비해 35%의 프리미엄입니다. 회사는 비트코인 인수 및 운영 자본을 포함한 일반 기업 목적에 사용될 약 19억 9천만 달러의 순수익을 예상하고 있습니다.
채권에는 조기 전환, 2027년 3월 5일 이후 상환 및 근본적인 변화가 있을 경우 채권 보유자를 위한 재매입 권리가 포함되어 있습니다. 구매자가 최대 3억 달러의 채권을 취득할 수 있는 추가 옵션이 부여되었습니다.
Strategy (MSTR) a annoncé le prix de 2,0 milliards de dollars d'obligations convertibles senior arrivant à échéance en 2030 dans le cadre d'une offre privée à des acheteurs institutionnels qualifiés. Les obligations seront des obligations senior non garanties avec un 0% d'intérêt régulier et arriveront à échéance le 1er mars 2030.
Le taux de conversion initial est de 2,3072 actions d'actions ordinaires de classe A pour 1 000 dollars de montant principal, ce qui représente un prix de conversion d'environ 433,43 dollars par action - une prime de 35% par rapport au prix moyen pondéré de 321,0514 dollars. L'entreprise s'attend à des produits nets d'environ 1,99 milliard de dollars, qui seront utilisés à des fins d'entreprise générales, y compris l'acquisition de bitcoins et le fonds de roulement.
Les obligations comprennent des dispositions pour une conversion anticipée, un remboursement après le 5 mars 2027, et des droits de rachat pour les détenteurs d'obligations en cas de changement fondamental. Une option supplémentaire a été accordée aux acheteurs pour acquérir jusqu'à 300 millions de dollars d'obligations.
Strategy (MSTR) hat die Preisgestaltung von 2,0 Milliarden Dollar anwandbaren Wandelanleihen mit Fälligkeit 2030 in einem privaten Angebot an qualifizierte institutionelle Käufer bekannt gegeben. Die Anleihen werden senior, unbesicherte Verpflichtungen mit 0% regulärem Zins sein und am 1. März 2030 fällig werden.
Der anfängliche Umwandlungskurs beträgt 2,3072 Aktien der Klasse A Stammaktien pro 1.000 Dollar Nennbetrag, was einen Umwandlungspreis von etwa 433,43 Dollar pro Aktie bedeutet - ein Aufschlag von 35% gegenüber dem gewichteten Durchschnittspreis von 321,0514 Dollar. Das Unternehmen erwartet Nettoerlöse von etwa 1,99 Milliarden Dollar, die für allgemeine Unternehmenszwecke, einschließlich des Erwerbs von Bitcoin und Betriebskapital, verwendet werden.
Die Anleihen enthalten Bestimmungen für eine vorzeitige Umwandlung, Rückzahlung nach dem 5. März 2027 und Rückkaufrechte für Anleiheinhaber im Falle einer grundlegenden Änderung. Käufern wurde eine zusätzliche Option eingeräumt, bis zu 300 Millionen Dollar an Anleihen zu erwerben.
- Substantial capital raise of $2.0 billion through convertible notes
- Zero interest rate on the notes, reducing debt servicing costs
- 35% conversion premium above current stock price
- Additional $300 million option available to purchasers
- Potential future dilution for shareholders upon conversion
- Additional debt obligation of $2.0 billion
- Mandatory repurchase obligation on March 1, 2028 if requested by noteholders
Insights
The $2 billion convertible notes offering represents a strategic financing move that warrants careful analysis. The zero-coupon structure is particularly noteworthy - by offering notes that pay no regular interest, Strategy significantly reduces its immediate cash obligations while securing substantial capital. This structure suggests strong market confidence in the company's future prospects.
The conversion terms reveal important insights: The 35% premium over current trading price is relatively aggressive, indicating both management's confidence in future appreciation and investors' willingness to pay for potential upside exposure. The initial conversion price of $433.43 effectively sets a ceiling where conversion becomes attractive, creating a synthetic call option for noteholders.
Several key provisions merit attention:
- The redemption option after March 2027 at 130% of conversion price provides Strategy flexibility to force conversion in strong market conditions
- The March 2028 investor put option offers noteholders protection, effectively creating a 3-year minimum holding period
- The 'fundamental change' repurchase requirement protects noteholders in case of major corporate events
The financing structure suggests a calculated balance between minimizing immediate cash costs and offering sufficient upside to attract institutional investors. The zero-coupon feature, while eliminating regular interest payments, likely required a more attractive conversion premium to compensate investors for the lack of current yield.
The stated use of proceeds for bitcoin acquisition and working capital indicates Strategy's continued commitment to its digital asset strategy. This raises important considerations about balance sheet exposure and risk management, particularly given the size of the offering relative to the company's market capitalization.
The notes will be senior, unsecured obligations of Strategy. The notes will not bear regular interest, and the principal amount of the notes will not accrete. The notes will mature on March 1, 2030, unless earlier repurchased, redeemed or converted. Before December 3, 2029, noteholders will have the right to convert their notes only upon the occurrence of certain events. From and after December 3, 2029, noteholders may convert their notes at any time at their election until the close of business on the second scheduled trading day immediately before the maturity date. Strategy will settle conversions by paying or delivering, as applicable, cash, shares of its class A common stock or a combination of cash and shares of its class A common stock, at Strategy’s election. The initial conversion rate is 2.3072 shares of class A common stock per
The notes will be redeemable, in whole or in part (subject to certain limitations), for cash at Strategy’s option at any time, and from time to time, on or after March 5, 2027 and on or before the 20th scheduled trading day immediately before the maturity date, but only if the last reported sale price per share of Strategy’s class A common stock exceeds
If a “fundamental change” (as defined in the indenture for the notes) occurs, then, subject to a limited exception, noteholders may require Strategy to repurchase their notes for cash. The repurchase price will be equal to the principal amount of the notes to be repurchased, plus accrued and unpaid special and additional interest, if any, to, but excluding, the applicable repurchase date. Noteholders may require Strategy to repurchase their notes on March 1, 2028, at a cash repurchase price equal to the principal amount of the notes to be repurchased, plus accrued and unpaid special and additional interest, if any, to, but excluding, the repurchase date.
Strategy estimates that the net proceeds from the offering will be approximately
The notes will be offered to persons reasonably believed to be qualified institutional buyers and sold to qualified institutional buyers in accordance with Rule 144A under the Securities Act. The offer and sale of the notes and the shares of Strategy’s class A common stock issuable upon conversion of the notes, if any, have not been and will not be registered under the Securities Act or the securities laws of any other jurisdiction, and the notes and any such shares may not be offered or sold in
This press release shall not constitute an offer to sell, or a solicitation of an offer to buy the notes, nor shall there be any sale of, the notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful under the securities laws of any such state or jurisdiction. There can be no assurances that the offering of the notes will be completed as described herein or at all.
About Strategy
MicroStrategy Incorporated d/b/a Strategy (Nasdaq: MSTR) is the world’s first and largest Bitcoin Treasury Company. We are a publicly traded company that has adopted Bitcoin as our primary treasury reserve asset. By using proceeds from equity and debt financings, as well as cash flows from our operations, we strategically accumulate Bitcoin and advocate for its role as digital capital. Our treasury strategy is designed to provide investors varying degrees of economic exposure to Bitcoin by offering a range of securities, including equity and fixed-income instruments. In addition, we provide industry-leading AI-powered enterprise analytics software, advancing our vision of Intelligence Everywhere. We leverage our development capabilities to explore innovation in Bitcoin applications, integrating analytics expertise with our commitment to digital asset growth. We believe our combination of operational excellence, strategic Bitcoin reserve, and focus on technological innovation positions us as a leader in both the digital asset and enterprise analytics sectors, offering a unique opportunity for long-term value creation.
Strategy, MicroStrategy, and Intelligence Everywhere are either trademarks or registered trademarks of MicroStrategy Incorporated in
Forward-Looking Statements
Statements in this press release about future expectations, plans, and prospects, as well as any other statements regarding matters that are not historical facts, may constitute “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements relating to the estimated net proceeds of the offering, the anticipated use of such net proceeds from the offering and the anticipated closing date. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would,” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the uncertainties related to market conditions and the completion of the offering on the anticipated terms or at all, the uncertainties related to the satisfaction of closing conditions for the sale of the notes, the other factors discussed in the “Risk Factors” section of Strategy’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 18, 2025 and the risks described in other filings that Strategy may make with the Securities and Exchange Commission. Any forward-looking statements contained in this press release speak only as of the date hereof, and Strategy specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250220604618/en/
Strategy
Shirish Jajodia
Corporate Treasurer
ir@strategy.com
Source: Strategy
FAQ
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