Key Takeaways
- Strategy is raising $2 billion through convertible notes.
- Proceeds may be used for Bitcoin acquisitions.
- Strategy currently holds over 478,000 Bitcoin.
Strategy, a business intelligence firm known for its Bitcoin holdings, announced a private offering of $2 billion in convertible senior notes, set to mature in 2030.
The funds will be allocated for general corporate purposes, including potential Bitcoin acquisitions.
Investment terms
The notes will be offered to institutional investors under Rule 144A of the Securities Act, enabling private placements to qualified buyers.
Investors will have the option to convert the notes into shares of Strategy’s Class A common stock at a price to be determined upon pricing.
Additional provisions
Additionally, the company has granted initial purchasers the option to acquire an extra $300 million in notes within five business days of issuance.
Unlike traditional bonds, these notes will not bear interest or increase in principal value.
Redemption terms
Strategy has implemented a redemption clause, allowing the company to repurchase the notes beginning in 2027 if its stock price surpasses 130% of the conversion price for a specified period.
Investors may also require Strategy to repurchase the notes in 2028 or in the event of certain “fundamental changes.”
Company background
Under the leadership of executive chairman Michael Saylor, Strategy has aggressively expanded its Bitcoin holdings since shifting focus in 2020.
As of February 18, 2025, the company owns over 478,000 Bitcoin.
Market outlook
The offering’s success will likely hinge on investor confidence in Strategy’s stock and the broader Bitcoin market.
