Strategy (formerly MicroStrategy) has announced a $2 billion private offering of convertible senior notes, further strengthening its commitment to Bitcoin accumulation.
The move showcases the company’s belief in Bitcoin as a strategic reserve asset, even as the market experiences heightened volatility recently, with BTC currently trading at $95.6K, as per CoinMarketCap data.
Since August 2020, Strategy has been at the forefront of corporate Bitcoin adoption, leveraging equity sales and debt financing to expand its holdings. The latest offering consists of 0% convertible senior notes due in 2030, available exclusively to qualified institutional buyers under Rule 144A of the Securities Act.
These notes will not accrue interest, and holders will have the option to convert them into cash, Strategy’s Class A common stock, or a mix of both, depending on the company’s election. Additionally, the firm has provided initial buyers an option to purchase an extra $300 million in notes, bringing the potential total raise to $2.3 billion.
A Massive Bitcoin Bet in a Volatile Market
The capital raise follows Strategy’s previous $243 million Bitcoin purchase, bringing its total holdings to 478,740 BTC. The company has spent approximately $31.1 billion acquiring these coins at an average price of $65,033 per BTC. Despite Bitcoin’s recent price struggles. The firm continues to double down on its investment thesis, seeing Bitcoin as the ultimate store of value.
A Long-Term Vision for Bitcoin Accumulation
The firm’s Bitcoin-first approach has been reinforced by its recent rebranding from MicroStrategy to Strategy, signaling a full commitment to digital assets. The company has also unveiled a “21/21 plan,” aiming to raise $21 billion in equity and another $21 billion in fixed-income securities, potentially accumulating over $42 billion in Bitcoin in the coming years. With institutional adoption growing and more corporations exploring Bitcoin as a treasury asset, the company’s move could set a precedent for other firms to follow.
The company will host a live investor webinar on February 19, 2025, to discuss the convertible note offering and its future Bitcoin approach.
