MicroStrategy Raises $2B in Convertible Notes for Acquisitions and Growth

MicroStrategy Inc., a leading enterprise analytics and mobility software provider, has announced a $2.0 billion offering of 0% convertible senior notes due in 2030. The company aims to use the net proceeds from this offering for general corporate purposes, including potential strategic acquisitions and investments.

The offering is expected to close on or about February 24, 2024, subject to customary closing conditions. The notes will be senior unsecured obligations of MicroStrategy and will accrue no interest. They will be convertible into shares of MicroStrategy's common stock at an initial conversion rate of 12.5000 shares per $1,000 principal amount of notes, subject to adjustment in certain circumstances.

MicroStrategy has engaged several financial institutions as joint book-running managers for the offering, including Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and Citigroup Global Markets Inc. The company has also granted the underwriters a 30-day option to purchase up to an additional $300 million of notes to cover over-allotments, if any.

This offering comes as MicroStrategy continues to expand its business and explore new opportunities in the technology sector. The company has been actively investing in strategic acquisitions and partnerships to enhance its product offerings and market position. In recent years, MicroStrategy has made significant investments in artificial intelligence, machine learning, and cloud-based solutions to better serve its customers and stay ahead of the competition.

The convertible notes offering is the latest in a series of financing initiatives by MicroStrategy to support its growth and innovation. In 2020, the company raised $650 million through a senior secured note offering, which it used to fund the acquisition of a strategic analytics software provider. In 2021, MicroStrategy raised an additional $1.05 billion through a senior convertible note offering, which it used to fund the acquisition of another analytics software provider and for general corporate purposes.

MicroStrategy's latest offering of convertible senior notes is a testament to the company's strong financial position and its commitment to driving growth and innovation in the enterprise analytics and mobility software market. As the company continues to execute on its strategic vision, investors and customers can expect to see MicroStrategy make further investments in technology, acquisitions, and partnerships to solidify its market leadership and deliver value to its stakeholders.