- Strategy raises $2 billion through convertible senior notes offering.
- Funds will drive further Bitcoin acquisitions and business expansion.
- Initial buyers can acquire an additional $300 million in notes.
Strategy, formerly MicroStrategy, has successfully raised $2 billion through a private offering of convertible senior notes. The company plans to use the net proceeds to fund further Bitcoin acquisitions and working capital. This move strengthens Strategy’s position as a major holder of BTC and underscores its commitment to digital assets.
Convertible Notes Raise Capital to Boost Bitcoin Investments
The offering, which took place on February 24, 2025, involved 0% convertible senior notes due to mature in 2030. Strategy sold the notes exclusively to qualified institutional buyers, in compliance with the Securities Act of 1933. The total offering raised $2 billion, and it includes an additional $300 million option for initial purchasers.
The notes will mature on March 1, 2030, but holders can convert them starting December 3, 2029. Upon conversion, holders will receive a combination of cash and Strategy’s class A common stock. The initial conversion rate is set at 2.3072 shares per $1,000 principal amount of notes, representing a 35% premium over the stock’s average price on February 19, 2025.
Strategy also has the option to redeem the notes starting March 5, 2027, under certain conditions. If the stock price exceeds 130% of the conversion price, the notes become redeemable at the company’s discretion. Additionally, noteholders can request Strategy to repurchase their notes for cash if a “fundamental change” occurs.
Strategy’s Bitcoin Strategy
Strategy’s Bitcoin strategy, which began in August 2020, has been a significant focus for the company. The company has regularly acquired Bitcoin to reach a total holding of 478,740 BTC valued at approximately $50 billion. The company’s decision to offer convertible notes has helped fund these purchases to strengthen its BTC treasury.
The funds raised will primarily be used for the acquisition of more Bitcoin, further expanding the company’s holdings. Strategy aims to continue its aggressive acquisition of Bitcoin as a digital capital asset and foster innovation in AI-powered enterprise analytics. The company’s commitment to Bitcoin as a primary treasury reserve asset is part of its long-term business strategy.
The offering was conducted in accordance with U.S. securities laws and allows participation only for institutional investors. The securities involved were not registered, ensuring the offering’s compliance with the relevant regulatory framework.
Strategy remains focused on operational excellence and technological innovation in both the digital asset and business intelligence sectors.
The convertible senior notes offering reinforces Strategy’s continued commitment to Bitcoin. The new funding strengthens the company’s position to advance its goals and solidify its leadership in both Bitcoin holdings and AI analytics.
