Strategy, formerly MicroStrategy, has announced a $2-billion senior convertible note offering to acquire more Bitcoin and support operational expenses.
These notes will carry a 0% interest rate and mature on March 1, 2030. Investors will have the option to convert each $1,000 note into 2.3072 shares of Strategy’s Class A common stock at a price of $433.43 per share—representing a 35% premium over the stock’s current value.
The conversion rate and price may fluctuate based on market conditions.
The offering is directed at qualified institutional investors, who will also have the option to purchase an additional $300 million in notes within five business days of the initial issuance.
Strategy Expands Bitcoin Holdings Despite Q4 Loss
Since rebranding to Strategy on Feb. 5, the company has seen growing institutional interest, with BlackRock increasing its stake to 5%. This move contributed to a 2.8% rise in Strategy’s stock price on Feb. 7.
On Feb. 10, Strategy acquired an additional 7,633 BTC, bringing its total Bitcoin holdings to 478,740 BTC, valued at around $46.4 billion. According to SaylorTracker, the company’s unrealized Bitcoin gains exceed $15 billion, marking a 49% increase in its BTC investment.
Additionally, 12 U.S. states collectively hold $330 million in Strategy stock through their treasuries or pension funds, with California, Florida, Wisconsin, and North Carolina among the states with the largest allocations.
Strategy’s Q4 2024 earnings report revealed that the company acquired 218,887 BTC during the quarter—its most aggressive buying spree to date. However, this expansion coincided with a $670-million net loss for the company in Q4 2024.
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