Strategy’s Bold Move to Strengthen Its Bitcoin Portfolio
Strategy (formerly MicroStrategy) is doubling down on its Bitcoin accumulation strategy with a new $2 billion private offering of zero-coupon convertible senior notes, set to mature in 2030. The company plans to use the funds for general corporate purposes, primarily acquiring more Bitcoin and supporting its working capital.
Aligning with the Ambitious “21/21 Plan”
This initiative aligns with Strategy’s “21/21 Plan,” introduced on October 30, 2024. The plan aims to raise $42 billion over three years through a mix of equity and fixed-income securities to invest heavily in Bitcoin. Since launching the plan, Strategy has secured more than half of its goal, amassing nearly 200,000 Bitcoins. As of February 18, 2025, the company holds 478,740 BTC.
The newly proposed convertible notes will be senior, unsecured obligations of the company and will not bear regular interest. Investors will have the option to convert their notes under certain conditions, with Strategy fulfilling conversions through cash, shares of its Class A common stock, or a mix of both. Additionally, starting March 5, 2027, the company can redeem the notes for cash if its stock price surpasses 130% of the conversion price.
A Well-Timed Strategic Expansion
This announcement follows a temporary halt in Strategy’s Bitcoin acquisitions. Executive Chairman Michael Saylor confirmed that no new Bitcoin purchases had been made in the past week, keeping the company’s holdings steady at 478,740 BTC. The total acquisition cost stands at approximately $31.1 billion, with an average purchase price of $65,033 per Bitcoin.
The timing of this offering could be strategic, as Bitcoin is currently consolidating just below the $100,000 mark. As of February 19, 2025, Bitcoin is trading at approximately $95,722, reflecting a 0.563% decline from the previous close. Meanwhile, Strategy’s stock (MSTR) is priced at $333.97, down 1.116% from the previous session.
By leveraging convertible notes, Strategy reinforces its aggressive Bitcoin-centric approach. The success of this offering will depend on investor confidence in both the company’s stock performance and the broader cryptocurrency market.
