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Michael Saylor's Strategy Launches $2B Fundraising Round to Expand 478,740 BTC Treasury

Michael Saylor's Strategy Launches $2B Fundraising Round to Expand 478,740 BTC Treasury

YellowYellow2025/02/20 05:44
By:Yellow

Strategy (formerly MicroStrategy), led by Michael Saylor, is set to raise $2 billion through a convertible debt offering. This move underscores the firm's ongoing strategy to significantly enhance its Bitcoin reserves.

Software intelligence firm Strategy, trading under Nasdaq: MSTR, has disclosed plans to secure $2 billion through a private sale of convertible senior notes, maturing in 2030. This initiative exemplifies Strategy's bold financing approach to procure additional Bitcoin.

The offering targets qualified institutional buyers in compliance with Rule 144A of the Securities Act, contingent on favorable market conditions. The company states its intention to utilize the proceeds for general corporate purposes, which include acquiring Bitcoin and addressing working capital needs.

These senior convertible notes are unsecured and carry a 0% interest rate, set to mature on March 1, 2030, unless repurchased, redeemed, or converted before that date. Investors are presented with options to convert the notes into cash, Strategy's Class A common stock, or a mix of both, based on the firm's preference. There's also an option for initial purchasers to acquire an additional $300 million in notes. Strategy may choose to redeem these notes for cash, partially or fully, from March 5, 2027, if its stock exceeds 130% of the conversion rate over a specified period. Noteholders can request Strategy to repurchase the notes if a fundamental corporate change occurs or on March 1, 2028.

Post-announcement, Strategy’s stock (MSTR) experienced a slight 1% decline, closing in the red on February 18, yet showed no movement in after-hours trading, according to Google Finance data. Despite this immediate market reaction, the stock has seen an impressive 372% increase over the past year, positioning it among the best-performing U.S. stocks in the last 12 months.

This latest financing effort aligns with Strategy's dedication to Bitcoin as a treasury reserve asset.

The firm continues to employ equity and debt financing to grow its Bitcoin portfolio while preserving its reputation in AI-driven enterprise analytics. As of February 17, Strategy owns 478,740 BTC, acquired at a total cost of $31.1 billion, averaging $65,033 per Bitcoin. Michael Saylor, the company's co-founder and executive chairman, passionately advocates for Bitcoin.

He anticipates its value might reach $13 million by 2045, with projections ranging from a bullish $49 million to a bearish $3 million, further emphasizing Bitcoin's role as a key asset for long-term value retention.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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