Strategy eyes $2.3B Bitcoin buy with debt offering

Strategy, previously known as MicroStrategy, announced plans to offer $2 billion in convertible senior notes to further acquire Bitcoin (CRYPTO:BTC).  

The offering, made on February 18, 2025, also includes an option for initial purchasers to buy up to an additional $300 million in notes within five business days of issuance.  

The company intends to use the proceeds for general corporate purposes, with a specific focus on Bitcoin acquisition.  

The zero-interest notes will mature in 2030 and are being offered to qualified institutional buyers.  

The notes will function as senior, unsecured obligations of Strategy without regular interest payments.  

Holders can convert their notes into cash, shares of Strategy’s Class A common stock, or a combination of both.  

Strategy will have the option to redeem the notes for cash starting March 5, 2027, if the company’s stock price exceeds 130% of the conversion price for a designated period.  

This move continues Strategy's pattern of using debt and equity financing to accumulate Bitcoin.  

The company aims to secure $42 billion in capital by 2027 to finance Bitcoin acquisitions through market-based stock sales and fixed-income instruments.  

As of February 17, Strategy held 478,740 Bitcoin, representing over 2.5% of the total supply.  

Despite a $670.8 million net loss in Q4, Strategy shares have increased by 372% over the last year.  

However, Strategy issued a profitability warning amid a potentially greater tax burden, saying it "may not be able to regain profitability in future periods," particularly if it incurs significant fair value losses related to its Bitcoin holdings.

At the time of reporting, the Bitcoin (BTC) price was $95,119.57.