MicroStrategy Announces Redemption of $1.05 Billion Convertible Senior Notes
MicroStrategy Inc (NASDAQ: MSTR) announced a full redemption notice for its outstanding 0% convertible senior notes due in 2027, totaling approximately $1.05 billion plus accrued interest. Note holders have until February 20, 2025, to participate.
MicroStrategy will fulfill conversion requests by delivering shares of its class A common stock and cash for any fractional shares.
Market Impact
- MSTR shares fell 0.69% to around $371 post-announcement.
- The company’s market valuation is $93.12 billion, supported by a strong balance sheet.
- MicroStrategy holds approximately 461,000 BTC after acquiring 11,000 BTC recently.
- Shares increased over 650% in the past year with a YTD BTC yield of 1.69% for 2025.
- Shareholders approved an increase in Class A common stock from 330 million to about 10.3 billion, reflecting high demand.
Bigger Picture
- MicroStrategy advocates Bitcoin as a strategic asset for companies.
- Approximately 3.01 million BTC are held by various companies influenced by MicroStrategy.
- Key holders include MARA Holdings, Riot Platforms, Tesla Inc., and others.
- The company is expected to continue its Bitcoin accumulation strategy, especially with support from the Trump administration.