MicroStrategy to Redeem $1.05 Billion in Bonds Early

MicroStrategy has announced plans to redeem convertible bonds worth approximately $1.05 billion, originally due in 2027.

MicroStrategy to Redeem $1.05B of 2027 Convertible Notes and Settle All Conversion Requests in Shares $MSTR https://t.co/yVBb06wkBY

— Michael Saylor⚡️ (@saylor) January 24, 2025

Until February 20, investors can exchange each $1000 in bonds for 7.02 shares of Class A common stock at the predetermined rate of $142.38. Fractional shares will be paid in cash.

At the time of writing, MicroStrategy’s stock price is approximately $375.8, reflecting a 0.71% increase from the previous closing price.

Following the purchase of an additional 11,000 BTC in January, the company increased its bitcoin reserves to 461,000 BTC. The assets are valued at $47 billion, with a paper profit of approximately $18 billion.

According to WSJ, from 2026, MicroStrategy may face billion-dollar tax payments due to new IRS legislation. The “Corporate Alternative Minimum Tax” (CAMT) rate of 15% will apply to companies with annual income exceeding $1 billion.

The publication reports that MicroStrategy is negotiating with the fiscal authorities for an exemption from these charges.

Back in October 2024, the company unveiled its “Plan 21/21,” aimed at raising $42 billion in equity and debt over three years to purchase bitcoins.

In December, the firm decided to increase the volume of shares available for sale under the initiative by more than $10 billion. Shareholders must approve the decision.