Strategy to Raise $2 Billion to Buy More Bitcoin — Is a Massive BTC Purchase Coming?
Microstrategy is preparing to raise $2 billion via convertible bonds to further increase its Bitcoin holdings, cementing its position as the largest bitcoin holder.
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Strategy to Raise $2 Billion to Buy More Bitcoin — Is a Massive BTC Purchase Coming?
Targeting $2 Billion in New Capital — A Big Bet on Bitcoin’s Future
Microstrategy (Nasdaq: MSTR), now rebranded as Strategy, announced on February 18 its plans to issue $2 billion in senior convertible bonds, due in 2030. The offering will be made exclusively to institutional investors under Rule 144A of the Securities Act, subject to market conditions. The company explained that the proceeds will be used for general corporate purposes, including the purchase of additional Bitcoin and working capital.
Zero-Coupon Bonds — A Long-Term Commitment to Bitcoin
These bonds will bear no interest and are senior, unsecured obligations of Strategy that will mature on March 1, 2030, unless converted, redeemed, or paid early. Investors will have the option to convert the bonds into cash, Strategy Class A common stock, or a combination of the two, at the company’s discretion. Strategy has also granted the initial investors the option to purchase an additional $300 million of the bonds if they so desire.
Additionally, Strategy has the right to redeem the bonds for cash starting on March 5, 2027, if the company’s stock price exceeds 130% of the conversion price for a specified period. Investors can also call on Strategy to redeem the bonds on March 1, 2028, or in the event of a fundamental change in the company.
Long-term vision for Bitcoin — Mission to hold the world’s largest treasury
Microstrategy’s move shows the company’s commitment to its long-term strategy, which focuses on using Bitcoin as its primary reserve asset. The company continues to use equity and debt to buy more Bitcoin, believing that this will provide investors with more exposure to BTC through financial instruments.
As of February 17, Microstrategy held 478,740 BTC, purchased for a total of $31.1 billion, or $65,033 per Bitcoin. Michael Saylor, the company’s co-founder and Executive Chairman, remains a strong Bitcoin advocate. He predicts that Bitcoin could be worth as much as $13 million by 2045, with a bullish scenario of $49 million and a bearish scenario of $3 million. Saylor believes that Bitcoin is the ultimate digital asset for long-term value creation.
Microstrategy is preparing to raise $2 billion via convertible bonds to further increase its Bitcoin holdings, cementing its position as the largest bitcoin holder.
