MicroStrategy, the largest corporate holder of Bitcoin, has announced plans to redeem all outstanding 0% convertible senior notes due in 2027, totaling approximately $1.05 billion.

The redemption is set for Feb. 24, 2025, at 100% of the principal amount, plus any accrued interest. Noteholders have until Feb. 20, 2025, to convert their notes into MicroStrategy’s Class A common stock at a rate of 7.0234 shares per $1,000 principal amount. This equates to a conversion price of $142.38 per share.

This move is significant, given MicroStrategy’s substantial investment in Bitcoin (BTC). Since August 2020, under the leadership of Executive Chairman Michael Saylor, the company has adopted Bitcoin as its primary treasury reserve asset, citing concerns over declining cash returns and a weakening dollar. 

MicroStrategy holds approximately 461,000 bitcoins, making it the largest corporate cryptocurrency holder.

Convertible senior notes are debt instruments that allow investors to exchange their holdings for a predetermined number of shares. By redeeming these notes, MicroStrategy aims to manage its debt obligations more effectively, potentially reduce interest expenses, and limit the dilution of existing shareholders.

MicroStrategy’s planned redemption of its convertible senior notes aligns with its broader financial strategy, emphasizing a strong commitment to Bitcoin as a central component of its corporate treasury.