The convertible notes are due 2030

Davis Polk advised the representative of the several initial purchasers in connection with a Rule 144A offering by MicroStrategy Incorporated d/b/a Strategy of $2 billion aggregate principal amount of its 0% convertible senior notes due 2030. Strategy intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin and for working capital.

Strategy is the world’s first and largest bitcoin treasury company. The company has adopted bitcoin as its primary treasury reserve asset. By using proceeds from equity and debt financings, as well as cash flows from its operations, it strategically accumulates bitcoin and advocates for its role as digital capital. The treasury strategy is designed to provide investors varying degrees of economic exposure to bitcoin by offering a range of securities, including equity and fixed-income instruments.

The Davis Polk corporate team included partners Daniel P. Gibbons and Joseph A. Hall, counsel Michael Stromquist and associate Kimberly Hickey. The equity derivatives team included partner Yan Zhang, counsel Justin Michael and associate Jonathan Schlecht. The tax team included partner Lucy W. Farr and associates Yueyu Yang and Georgianna Eck. All members of the Davis Polk team are based in the New York office.

 

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