MicroStrategy plans to redeem $1.05 billion debt, using Bitcoin holdings to avoid cash; may dilute shares.

From Investing.com

January 24, 2025 2:30:26 pm:

MicroStrategy, the business intelligence firm, is set to redeem $1.05 billion in 2027 Convertible Notes used to fund Bitcoin accumulation. With 461,000 BTC valued at $48.86 billion, the firm aims to settle the debt before maturity through share conversions at $142.38 per share by Feb. 24, 2025.

The decision to settle bondholders in shares strategically avoids using cash for Bitcoin purchases but may dilute MSTR shares, impacting stock value. MicroStrategy’s heavy reliance on Bitcoin for profit suggests a doubling down on holdings. Investors must monitor the move’s impact on stock prices.

Read more at Investing.com: MicroStrategy to Redeem Over $1 Billion in Debt Offering By U.Today