Michael Saylor’s Strategy is planning a $2 billion 0% convertible note sale to accumulate more Bitcoin, potentially increasing its 478,740 BTC reserve.
The business intelligence and Bitcoin-focused company, formerly MicroStrategy, is preparing a $2 billion 0% senior convertible note offering to acquire more Bitcoin.
In its Feb. 18 announcement, Strategy revealed that initial purchasers can buy an additional $300 million in notes, available for five business days after issuance.
The company stated that it intends to use the proceeds from the offering for further Bitcoin acquisitions and working capital purposes.
A senior convertible note is a form of debt that allows holders to convert it into equity down the line.
Compared to common stock, these notes give investors priority rights during bankruptcy or liquidation proceedings.
To implement its 21/21 Plan—designed to secure $42 billion in capital through equity and fixed-income securities over three years—Strategy has frequently issued senior convertible notes to purchase additional Bitcoin.
Michael Saylor, Strategy’s co-founder and executive chairman, crafted the plan.
Since its Oct. 30 launch, the firm has already implemented more than half of its $42 billion capital plan, buying nearly 200,000 Bitcoin. This raised its total to 478,740 BTC, making it the biggest corporate holder of Bitcoin, according to BitBo’s BitcoinTreasuries.NET.
Unless the company repurchases, converts, or redeems the proposed notes sooner, they will mature on March 1, 2030. However, Strategy stated that the offering depends on market conditions.
The announcement had minimal impact on MSTR shares, as they dropped slightly by just over 1% on Feb. 18 and remained flat in after-hours trading, according to Google Finance data.
Posting a 372% gain over the past year, Strategy’s stock stands out as one of the best-performing assets in the US market.
While Bitcoin’s value increased alongside Strategy’s purchases, the firm still reported a fourth-quarter net loss of $670.8 million.
Bitcoin peaked at $109,114 based on data from CoinMarketCap on the 20th of January, and has since fallen below the $100K mark. The largest crypto by market cap now trades at $97,000.
