09:19 AM EDT, 09/20/2024 (MT Newswires) -- MicroStrategy ( MSTR ) said Friday it completed a $1.01 billion offering of 0.625% convertible senior notes due 2028.

The amount of the notes sold in the offering includes $135 million of notes issued pursuant to the initial purchasers' full exercise of the option to buy additional notes, the company said.

MicroStrategy ( MSTR ) said the notes are convertible into cash, shares of its class A common stock, or a combination of the two. The conversion rate for the notes is set initially at 5.4589 shares of MicroStrategy ( MSTR ) class A stock per $1,000 principal amount of notes, which is equal to an initial conversion price of about $183.19 per share.

The company said the net proceeds from the sale of the notes were about $997.4 million, which it expects to use to fully redeem all $500 million outstanding amount of its 6.125% senior secured notes due 2028 and to use any balance of the proceeds to acquire additional bitcoin and for general corporate purposes.

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