MicroStrategy Completes $500M Offering of 6.125% Senior Secured Notes Due 2028

The software company, MicroStrategy has completed its $500 million offerings of secured notes, according to a statement. The company said it plans to use the proceeds, which it estimates at $488 million — after discounts, commissions and expenses — to buy more bitcoin.

The aggregate principal amount of the notes sold in the offering was $500 million and the notes bear interest at an annual rate of 6.125%. The notes were sold in a private offering to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and to persons outside of the United States in compliance with Regulation S under the Securities Act.

The offering was of secured notes due 2028. MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin.

The company currently holds 92,079 bitcoin, which is under the purview of its newly formed subsidiary MacroStrategy. The price of bitcoin is currently $40,700, suggesting that MicroStrategy will be able to buy around 11,990 more bitcoin, taking it well above the 100,000 marks.

MicroStrategy announced this latest offering on June 7, initially planning to raise $400 million before it was upped to $500 million. According to reports, the company had more than $1.6 billion worth of orders for the notes, “including interest from a large number of hedge funds.”