MicroStrategy Announces Bold Move to Redeem $1.05B Convertible Notes

• MicroStrategy to redeem $1.05B in convertible notes by February 2025.
• Holders can convert notes to stock at $142.38 per share by Feb 20.
• MicroStrategy strengthens Bitcoin holdings with $1.1B purchase.

In a major move, MicroStrategy has announced the redemption of $1.05 billion in outstanding notes, with holders able to convert them into shares. This decision aligns with the company’s continued Bitcoin-focused strategy.

MicroStrategy to Redeem $1.05B Convertible Notes

MicroStrategy has announced its decision to redeem $1.05 billion of its 0.0% Convertible Senior Notes due 2027. The company intends to redeem the full principal amount of the notes on February 24, 2025. Holders of the notes will have the option to convert their investments into shares of the company’s Class A common stock until February 20, 2025.

MicroStrategy’s redemption will take place at 100% of the principal value of the notes and any accrued interest. The company also outlined that conversions would be settled exclusively in shares of common stock, with cash provided for any fractional shares. The conversion rate is set at 7.0234 shares per $1,000 principal amount which is equal to a conversion price of $142.38 per share.

The company has set February 20, 2025, as the deadline for noteholders to submit conversion notices. After this date, MicroStrategy will proceed with the full redemption of the outstanding notes. The redemption process will follow the procedures outlined in the contract and will include electronic submission and surrender of the notes via DTC.

However, MicroStrategy has confirmed that the redemption notice is not an offer to buy or sell any notes. The terms and conditions of the redemption are detailed in the notice that was sent to the noteholders by the trustee. The company clarified that the announcement serves as a notice of redemption and does not constitute a solicitation.

The company remains focused on its Bitcoin investment strategy with total BTC holdings now over 460,000 BTC. These holdings have become a major element of its treasury strategy, making the company one of the largest institutional holders of Bitcoin.

MicroStrategy Diversifies Its Business Model As A Tech Hub

MicroStrategy’s commitment to Bitcoin is a part of its broader business model. The company utilizes its extensive data analytics capabilities and integrates Bitcoin as a key financial asset. Recently, it completed a substantial Bitcoin purchase worth approximately $1.1 billion, funded by proceeds from a stock sale.

The company’s aggressive Bitcoin accumulation aligns with its broader technological initiatives. The company recently expanded its authorized stock and amended its equity incentive plan to grant stock awards to non-employee directors. The company also launched the MicroStrategy Sovereign European Cloud, emphasizing its commitment to offer solutions to highly regulated businesses in Europe.

The company’s actions in both the digital asset space and enterprise software market reinforce its dual focus on innovation. The company’s recent recognition at the National Retail Federation 2025 conference highlights its strength in AI-powered solutions. These moves demonstrate MicroStrategy’s ongoing development as a significant player in both the cryptocurrency and enterprise analytics sectors.