In a latest development, MicroStrategy known for its significant Bitcoin investments and its exceptional 727% return over the past year, has issued a notice for the full redemption of its 0.0% Convertible Senior Notes due 2027.
The company informed the trustee that it plans to redeem the outstanding notes, which have an aggregate principal amo0unt of approximately $1.05 billion, on February 24, 2025.
Notably, holders of the notes can convert their investments into MicroStrategy’s class A common stock until 5:00 p.m. New York City time on February 20, 2025. The conversion rate is 7.0234 shares per $1,000 principal, which equals a price of $142.38 per share. Conversions will be settled in shares, with cash provided for any fractional shares.
Recently, the Microstrategy shareholders have approved an increase in the number of authorized shares, paving the way for the company to expand its Bitcoin holdings further. The shareholders have approved a plan to increase the company’s share supply, raising the total number of MSTR shares from 330 million to 10.3 billion. This increase will help support the company’s strategy of acquiring more Bitcoin as part of its long-term treasury plan.
In line with its ongoing strategy, MicroStrategy also made substantial moves in the cryptocurrency market. It recently added 11,000 BTC to its holdings, bringing its total to 461,000 bitcoin worth roughly $47 billion at current prices. It financed this latest acquisition through the issuance and sale of shares.
MicroStrategy’s aggressive Bitcoin acquisitions, which have led to a 2,500% stock gain since 2022, are expected to continue into 2025, setting the company up for significant growth.
