Close Menu
    Facebook X (Twitter) Instagram
    Thursday, August 21
    X (Twitter) Instagram LinkedIn YouTube
    Chain Tech Daily
    Banner
    • Altcoins
    • Bitcoin
    • Crypto
    • Coinbase
    • Litecoin
    • Ethereum
    • Blockchain
    • Lithosphere News Releases
    Chain Tech Daily
    You are at:Home » Strategy to raise $2b via convertible notes for Bitcoin purchases
    Crypto

    Strategy to raise $2b via convertible notes for Bitcoin purchases

    James WilsonBy James WilsonFebruary 19, 2025No Comments3 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr Email
    Share
    Facebook Twitter LinkedIn Pinterest Email



    Strategy, the world’s largest corporate Bitcoin holder, plans to raise $2 billion through zero-interest convertible notes to buy more Bitcoin.

    A company statement dated Feb. 18 proposed offering the notes to institutional investors in a private placement, with an additional $300 million option for early buyers. The notes, maturing on March 1, 2030, will be convertible into cash, stock, or a mix of both at Strategy’s discretion.

    The notes will not bear regular interest or accrete in value, meaning their principal amount will remain fixed over time. Strategy retains the right to redeem the notes for cash starting March 5, 2027, but only if its stock price trades at least 130% above the conversion price for a specified period.

    Meanwhile, investors can demand a repurchase on March 1, 2028, or in the event of a fundamental corporate change, at the principal amount plus any accrued special or additional interest.

    The Michael Saylor-led firm, which recently rebranded from MicroStrategy, noted that proceeds would primarily fund more Bitcoin acquisitions while a portion would be allocated as working capital.

    MSTR shares barely reacted to the latest announcement, closing down just over 1.1% on Feb. 18 before trading flat after hours. However, the stock remains up 373% over the past year, ranking among the best-performing assets in the U.S. market.

    The move aligns with the company’s broader 21/21 Plan, a strategy spearheaded by co-founder Michael Saylor to add $42 billion worth of Bitcoin to its balance sheet by 2027.  Strategy has relied heavily on debt offerings to fuel its Bitcoin buying spree, using convertible notes as a key tool to stack sats without diluting existing shareholders.

    According to its latest earnings report, where it posted a $670.8 million net loss, Strategy revealed that it has already secured more than $21 billion toward its $42 billion target since launching the 21/21 Plan in late 2023.

    The latest raise follows a series of similar debt-funded BTC grabs that helped push its holdings to a staggering 478,740 Bitcoin, according to data from BitcoinTreasuries.

    Meanwhile, Strategy has stalled its usual Bitcoin buys, with no new purchases recorded last week as its at-the-market equity program saw zero activity between Feb. 10 and Feb. 14, according to Michael Saylor.

    This was only the second time in 14 weeks that Strategy didn’t add to its holdings, mirroring a similar stretch in early February when stock sales temporarily dried up.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleGrayscale’s Cardano ETF filing could boost ADA; RBLK steals attention with 450% surge
    Next Article Africa and Europe’s green opportunity
    James Wilson

    Related Posts

    XRP holds $2.80 support as bullish retest signals potential new highs

    August 21, 2025

    Can this memecoin achieve its goal to turn $20,000 into $1 million?

    August 20, 2025

    Traders debate which coin will hit $1 first in the 2025-26 memecoin cycle

    August 20, 2025
    Leave A Reply Cancel Reply

    Don't Miss

    XRP holds $2.80 support as bullish retest signals potential new highs

    Andrew Tate struggles to pump memecoin amid Florida criminal inquiry

    Welcoming a new EF leadership structure

    Can this memecoin achieve its goal to turn $20,000 into $1 million?

    About
    About

    ChainTechDaily.com is your daily destination for the latest news and developments in the cryptocurrency space. Stay updated with expert insights and analysis tailored for crypto enthusiasts and investors alike.

    X (Twitter) Instagram YouTube LinkedIn
    Popular Posts

    XRP holds $2.80 support as bullish retest signals potential new highs

    August 21, 2025

    Andrew Tate struggles to pump memecoin amid Florida criminal inquiry

    August 21, 2025

    Welcoming a new EF leadership structure

    August 21, 2025
    Lithosphere News Releases

    Imagen Network Improves Digital Community Engagement Through Grok Driven Interaction Models

    August 20, 2025

    AGII Smarter Risk Detection Improves Decentralized Infrastructure Safety

    August 20, 2025

    Imagen Network Enhances User Experiences with Grok Personalization Engines

    August 19, 2025
    Copyright © 2025

    Type above and press Enter to search. Press Esc to cancel.