MicroStrategy® Incorporated Completes $500 Million Offering of 6.125% Senior Secured Notes Due 2028 with Bitcoin Use of Proceeds
June 14, 2021 at 09:25 am EDT
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MicroStrategy® Incorporated announced the closing of its previously announced offering of senior secured notes due 2028. 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 and to persons outside of the United States in compliance with Regulation S under the Securities Act. MicroStrategy estimates that the net proceeds from the sale of the notes and the related guarantees will be approximately $488 million, after deducting initial purchaser discounts and commissions and estimated offering expenses payable by MicroStrategy. MicroStrategy intends to use the net proceeds from the sale of the notes to acquire additional bitcoin.
MicroStrategy Incorporated is a bitcoin development company. It is engaged in the development of the bitcoin network through its activities in the financial markets, advocacy and technology. It designs, develops, markets and sales its software platform through licensing arrangements and cloud subscriptions and related services. It provides artificial intelligence-powered business intelligence, and enterprise analytics solutions. It offers software and services designed to turn complex, chaotic data environments into rich, reliable, and convenient information feeds for its customers. Its cloud-native flagship, MicroStrategy ONE, powers some of the analytics deployments in the world for customers spanning a range of industries, including retail, banking, technology, manufacturing, insurance, consulting, healthcare, telecommunications and the public sector. MicroStrategy ONE provides non-technical users with the ability to directly access novel and actionable insights for decision-making.