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MicroStrategy announces pricing of $500 Million senior secured notes due by 2028

Business intelligence firm MicroStrategy Incorporated announced the offering of an aggregate $500 million of senior secured notes due 2028. The notes will bear an annual interest rate of 6.125%. The company will sell these notes to qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933.


These notes sold will be completely and unconditionally guaranteed by MicroStrategy Services Corporation, a subsidiary of MicroStrategy. The guarantee will be given by MicroStrategy on its assets except for its Bitcoin. The company owns 92,079 Bitcoins that will now be held by a newly formed subsidiary, MacroStrategy LLC. The company estimates that after deducting the initial purchaser discounts and commissions and estimated offering expenses it will be able to raise $488 million.

The trend is little than before because earlier MicroStrategy had raised money to buy Bitcoin the notes offered were convertible to company shares. This time the notes will be guaranteed by a subsidiary of MicroStrategy and will not be convertible into company shares.

The note’s offer and sale will be registered in the United States and will be subject to the jurisdiction only in the country and not outside the country. The offering of the notes and related guarantees is being made only by means of a private offering memorandum.



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