Michael Saylor’s Strategy is planning to raise $2 billion through a new issuance of 0% convertible notes to further expand its Bitcoin holdings.
Michael Saylor’s Strategy, the firm formerly known as MicroStrategy, is planning to raise $2 billion through a new issuance of 0% convertible notes to further expand its Bitcoin holdings.
| Key Takeaways: – Michael Saylor’s Strategy is issuing 0% convertible notes maturing in 2030 to buy more Bitcoin. – As part of its 21/21 Plan, Strategy aims to raise $42 billion over three years through equity and debt. |
The company, led by executive chairman and co-founder Michael Saylor, aims to use the proceeds to acquire additional Bitcoin. The senior notes, set to mature in 2030, will be offered a 40% to 50% conversion premium and include a three-year put option, allowing investors the possibility of early redemption.
Convertible notes provide investors the opportunity to convert their holdings into equity while maintaining seniority over common stock in the event of liquidation or bankruptcy.
Michael Saylor’s Strategy has consistently leveraged debt and equity financing to fund its aggressive Bitcoin acquisition strategy. This latest offering follows a brief pause in capital-raising activities after the company had made Bitcoin purchases in 12 of the previous 14 weeks.
Despite the announcement, Strategy’s stock (MSTR) remained largely unchanged, trading flat after hours and closing down 1.11% on Feb. 18.
As of Feb. 17, Strategy holds 478,740 Bitcoins, representing more than 2.5% of the total Bitcoin supply and valued at over $45 billion.
The firm’s ongoing Bitcoin accumulation aligns with its broader 21/21 Plan, which targets raising $42 billion in capital over three years through a combination of equity and fixed-income securities. Since the plan’s introduction on Oct. 30, the company has already secured over half of the targeted funds, enabling it to purchase nearly 200,000 Bitcoin.
| Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor. |
