Key Takeaways:
- Strategy (formerly MicroStrategy) plans a $2B convertible note offering to buy more Bitcoin, with an option for an extra $300M.
- The move aligns with its “21/21 Plan”, aiming to raise $42B over three years for Bitcoin acquisitions, bringing total holdings to 478,740 BTC.
- Despite Bitcoin’s rise, MSTR stock remained flat, and the company reported a $670.8M net loss in Q4 2023.
Strategy, formerly MicroStrategy, has announced plans to raise $2 billion through a 0% senior convertible note offering to increase its Bitcoin holdings.
Initial buyers will have the option to purchase an additional $300 million in notes within five business days of issuance.
Strategy Announces Proposed Private Offering of $2.0B of Convertible Senior Notes. $MSTR https://t.co/EBOMdLlgdq
— Michael Saylor⚡️ (@saylor) February 18, 2025
The proceeds will primarily fund Bitcoin acquisitions and general corporate expenses.
Senior convertible notes are a type of debt security that can later be converted into equity, with priority over common stock in case of liquidation.
This offering aligns with Strategy’s “21/21 Plan,” which seeks to secure $42 billion over three years to acquire more Bitcoin.
Led by executive chairman Michael Saylor, the firm has accumulated nearly 200,000 BTC since October 2023, bringing its total holdings to 478,740 BTC—making it the largest corporate Bitcoin holder.
The notes will mature on March 1, 2030, unless repurchased, redeemed, or converted earlier.
Market conditions will determine the final outcome of the offering.
Despite the announcement, Strategy’s stock (MSTR) closed slightly down on Feb. 18.
However, MSTR has surged 372% over the past year, despite the company reporting a $670.8 million net loss in Q4 2023.
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Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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