MicroStrategy Announces $650M Note Redemption – Convert Now or Miss Out!

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MicroStrategy Incorporated has announced through a press release today that it intends to fully redeem its 0.750% Convertible Senior Notes due 2025, valued at $650 million. However, note holders have the option to convert their notes into shares of MicroStrategy’s (MSTR) Class A common stock before the scheduled redemption date.

Redemption Details

According to the press release, the redemption is scheduled for July 15, 2024. The redemption price will be 100% of the principal amount plus any accrued and unpaid interest up to the redemption date. 

Investors can convert their notes at a rate of 2.5126 shares per $1,000 principal amount, reflecting a conversion price of $397.99 per share. This conversion option remains open until 5:00 p.m., New York City time, on July 11, 2024. 

However, note holders have the option to convert their notes into shares of MicroStrategy’s Class A common stock before the redemption date. MicroStrategy has chosen to fulfill its conversion obligation entirely in shares, along with cash for any fractional shares.

Procedures for Conversion

To convert their notes, holders must follow the procedures outlined in the indenture governing the Notes. This includes electronic presentation and surrender through the facilities of the Depository Trust Company (DTC).

Additionally, this announcement does not serve as an offer to buy or sell any Notes and is not applicable in jurisdictions where such offers or sales are unlawful.