19.02.2025 13:31
Strategy, led by Michael Saylor, is expanding its Bitcoin investments by issuing $2 billion in convertible bonds. The bond proceeds will be used for Bitcoin purchases and working capital.
Under the leadership of Michael Saylor, Strategy is making a significant move in the cryptocurrency markets by issuing a $2 billion convertible bond. With this new capital, the company aims to expand its Bitcoin stash, attracting the attention of investors and the market. The bond proceeds will be used for further Bitcoin purchases and working capital.
Michael Saylor Back in Action: $2 Billion New Investment for Bitcoin
The Strategy company announced that it will issue $2 billion worth of zero-coupon convertible bonds to expand its Bitcoin assets. Led by Michael Saylor, the company aims to grow its existing portfolio of 478,740 Bitcoins.
Previously known as MicroStrategy, which provided business intelligence solutions, the company is making headlines with its Bitcoin-focused investment strategy. According to a recent announcement, in addition to the initial investors, Strategy will offer a $300 million additional bond purchase option within five business days.
The company plans to use the revenue from the bond sale for Bitcoin purchases and working capital. High-quality convertible bonds not only have the feature of being convertible into equity in the future but also provide shareholders with priority rights in the event of bankruptcy or liquidation.
As part of the 21/21 Plan signed by Michael Saylor, Strategy aims to raise $42 billion in capital over the next three years. According to data from BitBo and BitcoinTreasuries.NET, the company has raised more than half of the targeted capital since October 30, purchasing an additional 200,000 Bitcoins and rising to become the world's largest institutional Bitcoin investor with a total of 478,740 Bitcoins.
The future of the bonds maturing on March 1, 2030, will depend on market conditions. According to market data, Strategy (MSTR) shares experienced a limited decline of 1% on February 18 following the announcement and then remained stable. However, the company's shares have been among the best-performing stocks on the U.S. stock market, with a 372% increase in value over the past year.
Despite the increase in Strategy's Bitcoin investments and the appreciation of the cryptocurrency, the company reported a net loss of $670.8 million in the fourth quarter.