Strategy announces a $2 billion fundraise through zero-interest convertible notes to buy more Bitcoin.
Strategy to Raise $2B for Bitcoin Acquisition
Strategy, the largest corporate Bitcoin holder, is set to raise $2 billion through convertible notes to expand its BTC holdings. The company, formerly known as MicroStrategy, plans to offer these zero-interest notes to institutional investors. It also includes an additional $300 million option for early buyers.
The notes, maturing on March 1, 2030, will be convertible into cash, stock, or a mix of both at the company’s discretion. However, investors can request a repurchase in 2028 or in the event of major corporate changes.
Key Terms of the Convertible Notes
✔️ No regular interest: The principal amount remains fixed.
✔️ Redemption option: Strategy can redeem the notes in 2027, but only if its stock price trades 130% above the conversion price.
✔️ Investor repurchase rights: Holders can demand a buyback in 2028 at face value.
Bitcoin-First Strategy Continues
Led by Michael Saylor, Strategy is doubling down on its 21/21 Plan, a goal to accumulate $42 billion in Bitcoin by 2027. The firm has already secured over $21 billion since launching the plan in late 2023.
📊 Current Bitcoin holdings: 478,740 BTC
💰 Recent net loss: $670.8 million (Q4 earnings report)
Despite the announcement, Strategy’s stock (MSTR) dipped just 1.1% and remained flat after hours. However, MSTR has surged 373% in the past year, making it one of the top-performing U.S. stocks.
A Temporary Pause in Bitcoin Purchases?
Interestingly, Strategy did not add Bitcoin between Feb. 10 and Feb. 14, marking only the second pause in 14 weeks. Stock sales slowed temporarily, but the company remains committed to its Bitcoin-first strategy.
With this new $2 billion raise, another major Bitcoin buy could be on the horizon.
