Strategy, the largest corporate holder of Bitcoin globally, is set to raise $2 billion through zero-interest convertible notes aimed at acquiring additional Bitcoin.
A company statement outlined plans to offer these notes to institutional investors in a private placement, which also includes an option for early buyers to secure an additional $300 million. The notes will mature on March 1, 2030, and can be converted into cash, stock, or a combination of both at Strategy’s discretion.
The notes will not accrue interest, ensuring the principal amount remains fixed over time. Strategy can redeem the notes for cash starting March 5, 2027, but only if its stock price holds at least 130% above the conversion price for a designated period.
Furthermore, investors will have the option to request a repurchase on March 1, 2028, or in the event of significant corporate changes, receiving the principal amount plus any accrued special interest.
Under the leadership of Michael Saylor, the firm recently underwent a rebranding and has announced that proceeds from this raise will be primarily directed toward further Bitcoin acquisitions, with some funds allocated for operational capital.
Following the announcement, MSTR shares saw minimal movement, closing down 1.1% on February 18, while remaining up 373% over the past year—making it one of the best-performing assets in the U.S. market.
This initiative is part of Strategy’s ambitious 21/21 Plan, designed by co-founder Michael Saylor, which aims to integrate $42 billion worth of Bitcoin into its balance sheet by 2027. The company has consistently utilized debt offerings to finance its Bitcoin acquisitions through convertible notes, successfully expanding its holdings without diluting its existing shareholder base.
In its latest earnings report, the company disclosed a net loss of $670.8 million but noted it has already raised more than $21 billion towards its $42 billion goal since the inception of the 21/21 Plan in late 2023.
This latest raise follows a series of previous debt-funded Bitcoin acquisitions, bringing Strategy’s total Bitcoin holdings to an impressive 478,740, according to BitcoinTreasuries.
However, the company has paused its typical Bitcoin purchases, with no new acquisitions reported last week, as its at-the-market equity program experienced no activity from February 10 to February 14, as announced by Michael Saylor.
This marked only the second instance in 14 weeks where the company did not increase its holdings, reminiscent of a previous stretch in early February when stock sales temporarily halted.
