Strategy Targets $2 Billion in Convertible Notes to Boost Bitcoin Holdings

After a profitability warning, Strategy, the company formerly known as MicroStrategy, announced plans to raise $2 billion through the issuance of zero-interest convertible senior notes.

The funds will be allocated to various corporate activities, including further Bitcoin acquisitions.

The notes, which mature in March 2030, may be converted, repurchased, or redeemed earlier. Conversions will be settled in either cash, Class A common stock, or a combination of both.

Additionally, the company is offering an option for initial buyers to purchase an additional $300 million worth of notes within five business days of issuance.

Earlier in the day, Strategy revealed potential financial challenges in its 10-K filing with the U.S. SEC, warning that it may struggle to return to profitability in the future.

The company anticipates further financial strain due to a $1.79 billion impairment loss on its digital assets. Should the value of its Bitcoin holdings drop significantly, Strategy may face difficulties meeting its financial obligations.

In 2024, Strategy acquired over 258,000 BTC, and with a recent acquisition between February 3-9, it now holds nearly 479,000 BTC, valued at over $46 billion.