Michael Saylor’s firm, Strategy (formerly MicroStrategy), is raising $2 billion through a convertible debt offering to expand its Bitcoin holdings, continuing its aggressive treasury strategy.
Convertible Debt Offering Announced
Software intelligence firm Strategy (Nasdaq: MSTR), formerly known as MicroStrategy, has announced plans to raise $2 billion through a private offering of convertible senior notes due in 2030. The move extends the company’s unconventional approach to funding Bitcoin acquisitions. The offering will be made to qualified institutional buyers under Rule 144A of the Securities Act and is subject to market conditions.
According to the company,
“Strategy intends to use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin and for working capital.”
Details of the Convertible Notes
The senior convertible notes will be unsecured obligations with a 0% interest rate and will mature on March 1, 2030, unless repurchased, redeemed, or converted earlier. Investors will have the option to convert the notes into cash, shares of Strategy’s Class A common stock, or a combination of both at the company’s discretion. Additionally, an option has been granted to initial purchasers to buy up to an additional $300 million in notes.
Strategy also retains the right to redeem the notes for cash, in whole or in part, on or after March 5, 2027, provided its stock price exceeds 130% of the conversion price for a specified period. Noteholders may also require Strategy to repurchase the notes in the event of a fundamental corporate change or on March 1, 2028.
Stock Performance and Market Reaction
Following the announcement, Strategy’s stock (MSTR) dipped slightly, closing down 1% on February 18 and remaining flat in after-hours trading, according to Google Finance. However, the company’s stock has surged 372% over the past year, ranking it among the top-performing U.S. stocks over the last 12 months.
Bitcoin Treasury Expansion Strategy
Strategy’s latest fundraising effort aligns with its long-standing commitment to Bitcoin as a treasury reserve asset. The firm has consistently leveraged equity and debt financing to expand its Bitcoin holdings while maintaining its leadership in AI-powered enterprise analytics. As of February 17, the company holds 478,740 BTC, acquired for $31.1 billion at an average price of $65,033 per Bitcoin.
Michael Saylor, co-founder and executive chairman, remains one of Bitcoin’s most vocal proponents. He has projected Bitcoin’s price could reach $13 million by 2045, with estimates ranging from a bullish scenario of $49 million to a bearish outlook of $3 million. His stance reinforces his view of Bitcoin as the premier digital asset for long-term value preservation.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
