MicroStrategy Announces Redemption of 2027 Notes

On January 24, 2025, MicroStrategy Incorporated (NASDAQ:MSTR) disclosed in an 8-K filing with the Securities and Exchange Commission that the company has initiated the full redemption of its outstanding 0.0% Convertible Senior Notes due 2027 (2027 Notes). The aggregate principal amount of the 2027 Notes being redeemed totals approximately $1.05 billion, equivalent to the current aggregate principal amount held by investors.

The redemption process is scheduled for February 24, 2025, with a redemption price set at 100% of the principal amount of the 2027 Notes to be redeemed, along with accrued and unpaid special interest, if any, up to but not including the Redemption Date, unless converted earlier.

As per the notice delivered, holders of the 2027 Notes can opt for conversion at any time leading up to 5:00 p.m., New York City time, on February 20, 2025, at a conversion rate of 7.0234 shares of MicroStrategy’s class A common stock per $1,000 principal amount, reflecting a conversion price of $142.38 per share.

In case any holder issues a conversion notice as per the indenture linked to the 2027 Notes, MicroStrategy has decided to fulfill its conversion obligation pertaining to each $1,000 principal amount of 2027 Notes by issuing solely shares of its class A common stock, alongside cash in lieu of any fractional shares.

It’s important to note that the information detailed in this 8-K filing is for informational purposes solely and does not serve as an offer to purchase or a solicitation to sell any 2027 Notes, nor does it constitute an offer, solicitation, or sale in any jurisdiction where such actions would be considered unlawful.

Regarding forward-looking statements, MicroStrategy cautions that declarations about upcoming expectations, plans, and prospects, including those pertinent to the Redemption, may be subject to uncertainties tied to market conditions and the completion of the redemption process. The company advises investors to consider the risks outlined in its SEC filings before making any investment decisions.

This report on Form 8-K issued by MicroStrategy signifies a strategic move for the company, indicating an important financial decision that may affect its position in the market in the coming months.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read MicroStrategy’s 8K filing here.

MicroStrategy Company Profile

MicroStrategy Incorporated provides artificial intelligence-powered enterprise analytics software and services in the United States, Europe, the Middle East, Africa, and internationally. It offers MicroStrategy ONE, which provides non-technical users with the ability to directly access novel and actionable insights for decision-making; and MicroStrategy Cloud for Government service, which offers always-on threat monitoring that meets the rigorous technical and regulatory needs of governments and financial institutions.