Reinforcing its approach to increase Bitcoin holdings and supporting operational expenses, Strategy has revealed plans to raise $2 billion through a senior convertible note issue. Targeting institutional investors, the proposal offers an option to issue an extra $300 million in notes within five business days following the initial issuing.
Having a 0% interest rate, the convertible notes are set to mature on March 1, 2030. Translating each $1,000 note into 2.3072 shares of Strategy’s Class A common stock, the conversion price is $433.43 per share—a 35% premium over the company’s current market price. Price and conversion rate still depend on certain circumstances and market swings.
Strategy keeps actively accumulating Bitcoin in line with its larger aim. Its most recent acquisition on February 10 contributed 7,633 BTC to its balance sheet, therefore increasing its total holdings to 478,740 BTC, worth around $46.4 billion. The corporation is dedicated to using financial tools to support more acquisitions despite market volatility and conflicting investor opinion on its strategy.
Strategically expanding institutional investors have noticed this. The biggest asset manager in the world, BlackRock recently raised its ownership in the business to 5% to show faith in its long-term direction. Further supporting the company’s position in the market are many U.S. states holding around $330 million worth of Strategy stock in their pension funds and treasuries.
The aggressive Bitcoin acquisition strategy of Strategy fits with its 21/21 plan, which seeks to fund continual BTC purchases with debt and equity raising of $21 billion. This approach, while ambitious, has yielded significant unrealized gains exceeding $15 billion, with the company’s Bitcoin investment currently up by over 49%.
The firm’s fast growth has not been without difficulties, either. Its heavily leveraged posture was highlighted by a $670 million net loss in its Q4 2024 earnings release. Nonetheless, Strategy remains steadfast in its belief that Bitcoin is a superior store of value and continues to shape its financial strategy around this conviction.
Looking forward, Strategy’s most recent action confirms its leadership in business advocacy for Bitcoin acceptance. As institutional interest in cryptocurrency continues to grow, the company’s bold approach may serve as a blueprint for other firms seeking exposure to digital assets through strategic financial mechanisms.
