MicroStrategy Announces Redemption of 650M Notes Convert Now or Risk Missing Out

MicroStrategy Incorporated made a significant announcement today regarding the redemption of its 0.750% Convertible Senior Notes due 2025, valued at $650 million. Noteholders are given the option to convert their notes into shares of MicroStrategy’s (MSTR) Class A common stock before the scheduled redemption date.

The redemption is set to take place on July 15, 2024, with the redemption price being 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, equivalent to a conversion price of $397.99 per share. The deadline for conversion is 5:00 p.m., New York City time, on July 11, 2024.

MicroStrategy has decided to fulfill its conversion obligation entirely in shares, along with providing cash for any fractional shares. To convert their notes, holders must adhere to the procedures outlined in the indenture governing the Notes, including electronic presentation and surrender through the facilities of the Depository Trust Company (DTC).

It is important to note that this announcement does not constitute an offer to buy or sell any Notes and is not valid in jurisdictions where such offers or sales are unlawful.