MicroStrategy Announces Full Redemption of Convertible Notes Due 2027
In the latest article developMicroStrategy, known for its large Bitcoin investments and stellar returns of 727% over the past year, has issued a notice to redeem in full its 0.0% convertible senior notes due 2027.
The company notified the trustee that it plans to redeem approximately $1.05 billion in aggregate principal amount of its outstanding notes on February 24, 2025.
Notably, noteholders have until 5:00 p.m. New York time on February 20, 2025 to convert their investments into shares of MicroStrategy’s Class A common stock. The conversion rate is 7.0234 shares per $1,000 principal amount, equivalent to $142.38 per share. Conversions will be settled in shares, with cash provided for any fractional shares.
Big moves in micro-strategy
Recently, Microstrategy shareholders officially recognized The increase in the number of authorized shares paves the way for the company to further expand its Bitcoin holdings. Shareholders have approved plans to increase the company’s share supply, increasing the total number of MSTR shares from 330 million to 10.3 billion. The increase will help support the company’s strategy to acquire more Bitcoin as part of its long-term financial plan.
In line with its ongoing strategy, MicroStrategy has also made significant moves in the cryptocurrency market. Recently, the company added 11,000 Bitcoins, bringing its holdings to 461,000, which is worth about $47 billion at current prices. It funded this latest acquisition by issuing and selling shares.
MicroStrategy’s aggressive Bitcoin acquisitions have resulted in a 2,500% share price increase since 2022 and are expected to continue into 2025, setting the stage for significant growth for the company.
