MicroStrategy announces full redemption of $1.05 billion notes

TYSONS CORNER, Va. - MicroStrategy Incorporated (NASDAQ:MSTR), known for its significant Bitcoin investments and remarkable 727% return over the past year, has issued a notice for the full redemption of its 0.0% Convertible Senior Notes due 2025. According to InvestingPro data, analysts maintain a strong buy consensus with a potential upside to $650 per share. The company informed the trustee that it plans to redeem the outstanding notes, which have an aggregate principal amount of approximately $1.05 billion, on February 24, 2025.

Holders of the notes have the option to convert their investments into shares of MicroStrategy's class A common stock until 5:00 p.m., New York City time, on February 20, 2025. The conversion rate is set at 7.0234 shares per $1,000 principal amount, which is equivalent to a conversion price of $142.38 per share. In accordance with the company's decision, conversions will be settled in shares, with cash paid for any fractional shares.

To initiate the conversion, note holders must follow the procedures outlined in the indenture governing the notes, including the surrender of their notes through DTC's electronic system. The redemption will be conducted at a price equal to 100% of the principal amount plus any accrued and unpaid special interest up to, but not including, the redemption date. With total debt of approximately $4.27 billion and a current ratio of 0.65, InvestingPro analysis indicates the company operates with a moderate level of debt relative to its $93 billion market capitalization.

This announcement does not serve as a redemption notice nor does it constitute an offer to buy or sell any notes. The specific terms and conditions of the redemption are detailed in the notice provided to note holders by the trustee.

MicroStrategy, which describes itself as the world's first and largest Bitcoin Treasury Company, has made headlines for its strategy of accumulating Bitcoin as its primary treasury reserve asset. The company also offers AI-powered enterprise analytics software and is actively involved in developing Bitcoin applications, integrating its analytics expertise with its digital asset focus. InvestingPro subscribers can access 12 additional key insights about MSTR's financial health, including detailed analysis of its volatile trading patterns and comprehensive valuation metrics through the Pro Research Report, available exclusively on the platform.

The information in this article is based on a press release statement from MicroStrategy Incorporated.

In other recent news, MicroStrategy Incorporated announced a series of significant corporate developments. Following a Special Meeting of Stockholders, the company's stock authorization was expanded, amending the Second Restated Certificate of Incorporation to raise the number of authorized Class A common stock and preferred stock significantly. Additionally, the 2024 Plan Amendment to the original 2023 Equity Incentive Plan was approved, granting new non-employee directors equity awards valued at $2 million.

In line with its ongoing strategy, MicroStrategy also made substantial moves in the cryptocurrency market, adding approximately $1.1 billion worth of Bitcoin to its holdings. This recent acquisition was funded by the proceeds from the sale of over 3 million shares, bringing their total Bitcoin holdings to around 461,000.

MicroStrategy's commitment to digital currency was further emphasized by its Chairman, Michael Saylor, advocating for Bitcoin investment over bonds. This advocacy follows the company's consistent weekly Bitcoin purchases, marking its 10th consecutive week of acquisition recently.

Apart from cryptocurrency investments, MicroStrategy also launched the MicroStrategy Sovereign European Cloud in partnership with STACKIT, aiming to serve highly regulated businesses in Europe. The company's AI-powered solutions were recognized at the National Retail (NYSE:NNN) Federation 2025 conference, receiving the Partner of the Year and the VIP Challenge for AI Innovation & Application awards.

These recent developments reflect MicroStrategy's strategic focus on Bitcoin investment and its drive to leverage its equity for increasing holdings in the cryptocurrency.

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