Strategy Announces Proposed Private Offering of $2.0 Billion of Convertible Senior Notes
Strategy (MSTR) has announced plans to offer $2.0 billion in 0% convertible senior notes due 2030 through a private offering to qualified institutional buyers. The company may grant initial purchasers an option for an additional $300 million in notes.
The notes will be senior, unsecured obligations without regular interest. Holders can convert notes under certain conditions, with Strategy settling conversions through cash, class A common stock, or a combination. The notes will be redeemable after March 5, 2027, if Strategy's stock price exceeds 130% of the conversion price.
Strategy plans to use the proceeds for general corporate purposes, including bitcoin acquisition and working capital. The offering will be conducted under Rule 144A of the Securities Act, and the company will host a Video Webinar on February 19, 2025, to discuss the offering with qualified institutional buyers.
Strategy (MSTR) ha annunciato piani per offrire 2,0 miliardi di dollari in note senior convertibili al 0% con scadenza nel 2030 attraverso un'offerta privata a compratori istituzionali qualificati. L'azienda potrebbe concedere agli acquirenti iniziali un'opzione per ulteriori 300 milioni di dollari in note.
Le note saranno obbligazioni senior, non garantite, senza interessi regolari. I detentori potranno convertire le note in determinate condizioni, con Strategy che regolerà le conversioni attraverso contante, azioni ordinarie di classe A o una combinazione. Le note saranno riscattabili dopo il 5 marzo 2027, se il prezzo delle azioni di Strategy supera il 130% del prezzo di conversione.
Strategy prevede di utilizzare i proventi per scopi aziendali generali, inclusi acquisti di bitcoin e capitale circolante. L'offerta sarà condotta ai sensi della Regola 144A del Securities Act, e l'azienda ospiterà un webinar video il 19 febbraio 2025, per discutere dell'offerta con compratori istituzionali qualificati.
Strategy (MSTR) ha anunciado planes para ofrecer 2.0 mil millones de dólares en notas senior convertibles al 0% con vencimiento en 2030 a través de una oferta privada a compradores institucionales calificados. La empresa puede otorgar a los compradores iniciales una opción por 300 millones de dólares adicionales en notas.
Las notas serán obligaciones senior, no garantizadas, sin interés regular. Los tenedores podrán convertir las notas bajo ciertas condiciones, con Strategy liquidando las conversiones a través de efectivo, acciones ordinarias de clase A, o una combinación. Las notas serán redimibles después del 5 de marzo de 2027, si el precio de las acciones de Strategy supera el 130% del precio de conversión.
Strategy planea utilizar los ingresos para fines corporativos generales, incluyendo adquisiciones de bitcoin y capital de trabajo. La oferta se llevará a cabo bajo la Regla 144A de la Ley de Valores, y la empresa organizará un seminario web en video el 19 de febrero de 2025, para discutir la oferta con compradores institucionales calificados.
Strategy (MSTR)는 2030년 만기 0% 전환형 선순위 채권 20억 달러를 자격 있는 기관 투자자에게 비공식적으로 제공할 계획을 발표했습니다. 회사는 초기 구매자에게 추가로 3억 달러의 채권 옵션을 부여할 수 있습니다.
채권은 정기 이자가 없는 선순위 무담보 의무입니다. 보유자는 특정 조건에 따라 채권을 전환할 수 있으며, Strategy는 현금, A 클래스 보통주 또는 이들의 조합을 통해 전환을 정산할 수 있습니다. 채권은 2027년 3월 5일 이후에 Strategy의 주가가 전환 가격의 130%를 초과할 경우 상환 가능합니다.
Strategy는 수익금을 일반 기업 목적, 비트코인 인수 및 운전 자본에 사용할 계획입니다. 이 제안은 증권법 제144A조에 따라 진행되며, 회사는 2025년 2월 19일에 자격 있는 기관 투자자와 제안에 대해 논의하기 위한 비디오 웨비나를 개최할 예정입니다.
Strategy (MSTR) a annoncé des plans pour offrir 2,0 milliards de dollars en obligations senior convertibles à 0% arrivant à échéance en 2030 par le biais d'une offre privée à des acheteurs institutionnels qualifiés. L'entreprise pourrait accorder aux acheteurs initiaux une option pour des obligations supplémentaires de 300 millions de dollars.
Les obligations seront des engagements seniors non garantis sans intérêts réguliers. Les détenteurs pourront convertir les obligations sous certaines conditions, Strategy réglant les conversions par des liquidités, des actions ordinaires de classe A ou une combinaison. Les obligations seront rachetables après le 5 mars 2027, si le prix de l'action de Strategy dépasse 130 % du prix de conversion.
Strategy prévoit d'utiliser les produits pour des besoins généraux d'entreprise, y compris l'acquisition de bitcoins et le fonds de roulement. L'offre sera réalisée conformément à la règle 144A de la Loi sur les valeurs mobilières, et l'entreprise organisera un webinaire vidéo le 19 février 2025 pour discuter de l'offre avec des acheteurs institutionnels qualifiés.
Strategy (MSTR) hat Pläne angekündigt, 2,0 Milliarden Dollar in 0% wandelbaren vorrangigen Anleihen mit Fälligkeit im Jahr 2030 durch ein privates Angebot an qualifizierte institutionelle Käufer anzubieten. Das Unternehmen kann den ursprünglichen Käufern eine Option für zusätzliche 300 Millionen Dollar in Anleihen gewähren.
Die Anleihen werden vorrangige, unbesicherte Verpflichtungen ohne regelmäßige Zinsen sein. Inhaber können die Anleihen unter bestimmten Bedingungen umwandeln, wobei Strategy die Umwandlungen durch Bargeld, Stammaktien der Klasse A oder eine Kombination davon abwickelt. Die Anleihen können nach dem 5. März 2027 zurückgezahlt werden, wenn der Aktienkurs von Strategy 130% des Wandlungspreises übersteigt.
Strategy plant, die Erlöse für allgemeine Unternehmenszwecke, einschließlich Bitcoin-Erwerb und Betriebskapital, zu verwenden. Das Angebot wird gemäß Regel 144A des Wertpapiergesetzes durchgeführt, und das Unternehmen wird am 19. Februar 2025 ein Video-Webinar veranstalten, um das Angebot mit qualifizierten institutionellen Käufern zu besprechen.
- Large capital raise of $2.0 billion with potential for additional $300 million
- Zero interest rate on the convertible notes
- Flexible settlement options for conversions (cash, stock, or combination)
- Strengthening balance sheet for bitcoin acquisition and working capital
- Potential dilution for existing shareholders if notes are converted to stock
- Additional debt burden of $2.0-2.3 billion
- Early redemption risk if stock price exceeds 130% of conversion price
- Fundamental change repurchase obligations could strain cash resources
Insights
This $2.0 billion convertible note offering (potentially extending to $2.3 billion with the overallotment option) represents a strategic financing move that merits careful analysis. The zero-coupon structure eliminates regular interest payments, significantly reducing immediate cash flow burden while providing noteholders with potential equity upside through conversion rights.
Several key features warrant attention: First, the 2030 maturity provides substantial runway for Strategy's bitcoin investment thesis to play out. The conversion option, tied to stock performance, creates a hybrid security that could limit immediate dilution while offering future flexibility. The redemption clause, exercisable from March 2027 at 130% of conversion price, provides Strategy with optionality to manage its capital structure.
The scale of this offering is particularly noteworthy, representing approximately 2.3% of Strategy's current market capitalization. The zero-coupon structure, while eliminating regular interest expenses, typically results in a lower conversion premium, potentially creating more dilution risk for existing shareholders. However, this trade-off may be calculated, given the company's focus on bitcoin acquisition.
The timing of this offering appears strategic, potentially capitalizing on current market conditions and investor sentiment in both equity and crypto markets. The Rule 144A structure, targeting qualified institutional buyers, suggests strong institutional interest in gaining exposure to Strategy's bitcoin-focused business model through a structured product that provides both downside protection and upside participation.
The mandatory repurchase option in 2028 provides an important safety valve for noteholders, effectively creating a put option that could influence the notes' trading dynamics and pricing. This feature, combined with the 'fundamental change' repurchase rights, offers noteholders significant protection while potentially increasing the effective cost of capital for Strategy.
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. Noteholders will have the right to convert their notes in certain circumstances and during specified periods. 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 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 certain corporate events that constitute a “fundamental change” occur, 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. Unless certain conditions have been satisfied, 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.
The initial conversion rate and other terms of the notes will be determined at the pricing of the offering. Strategy expects that the reference price used to calculate the initial conversion price for the notes will be the
Strategy intends to use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin and for working capital.
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.
Video Webinar
Strategy will be discussing the proposed convertible notes offering on a live Video Webinar beginning at approximately 10:00 a.m. Eastern Standard Time on Wednesday, February 19, 2025. If you are a qualified institutional buyer as defined in Rule 144A under the Securities Act, and you would like to participate in this proposed convertible notes offering and/or attend the Video Webinar, please complete the investor survey, which can be accessed at https://www.strategy.com/investor-relations/register. We or parties on our behalf may request additional information to verify your status as a qualified institutional buyer. Failure to provide requested information may prevent you from participating in our private offering of securities pursuant to Rule 144A under the Securities Act. Access to the Video Webinar and completion of the investor survey does not mean you will receive an allocation in this proposed convertible notes offering.
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 size and timing of the offering, the anticipated use of any proceeds from the offering and the terms of the securities being offered. 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 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/20250218897689/en/
Strategy
Shirish Jajodia
Corporate Treasurer
ir@strategy.com
Source: Strategy
FAQ
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