Key Notes
- Strategy has raised over $8.3 billion through convertible notes since March 2024, solidifying its position as the largest corporate Bitcoin holder.
- The company's successful Bitcoin investment approach has influenced over 160 entities worldwide to hold BTC as a hedge against inflation.
- Major financial institutions including BlackRock, Capital Group, and Vanguard have become key shareholders in Strategy's Bitcoin-focused business model.
As Bitcoin BTC $98 388 24h volatility: 2.3% Market cap: $1.95 T Vol. 24h: $27.58 B prepares for the thrilling phase of the 2025 bull rally, Strategy (NASDAQ: MSTR), which was formerly known as MicroStrategy, has announced key details of how it intends to purchase the ongoing dip.
The large-cap company announced the pricing of its $2 billion offering of 0 percent convertible senior notes due by 2030. The offering, which is expected to end on Friday, February 21, granted the initial purchases of the notes an option to buy up to an additional $300 million. As a result, Strategy will likely raise a total of $2.28 billion if the offering of the convertible senior notes is fully exercised by the qualified institutional buyers.
Strategy Announces Pricing of Convertible Senior Notes Offering $MSTR https://t.co/douBzi3hKb
— Michael Saylor⚡️ (@saylor) February 20, 2025
In addition to Michael Saylor, the company’s co-founder, Strategy has amassed several key shareholders led by BlackRock Inc. (NYSE: BLK), Capital Group, Vanguard Group, and Morgan Stanley, among others. The company said that it will settle conversions “by paying or delivering, as applicable, cash, shares of its class A common stock or a combination of cash and shares of its class A common stock, at Strategy’s election.”
“The initial conversion rate is 2.3062 shares of class A common stock per $1,000 principal amount of notes, which represents an initial conversion price of approximately $433.43 per share of class A common stock. The initial conversion price represents a premium of approximately 35% over the US composite volume weighted average price of Strategy’s class A common stock,” the company noted.
Strategy Bitcoin Plan
Once the ongoing offering is completed, Strategy will have raised more than $8.3 billion via convertible senior notes since March 2024. In addition, Strategy is also raising more funds through capital, including its previously announced $42 billion capital plan and the convertible preferred stock offering dubbed Strike (STRK).
The company has focused on purchasing more Bitcoins to outrun the inflation and the mathematical depletion of BTC in circulating supply and mining. As Coinspeaker previously reported , Strategy is the largest entity with Bitcoin in its treasury, amounting to about 478,740 BTCs.
Market Impact
The resounding success of Strategy with its Bitcoin plan has convinced dozens of companies around the world to hold its BTC as a hedge against macroeconomic uncertainty and inflation. Led by Metaplanet Inc. (Tokyo: 3350), over 160 entities with Bitcoin as part of their treasury have accumulated over 3.1 million BTCs.
The rising demand for Bitcoin by institutional investors will further fuel bullish sentiment in the long haul. Furthermore, Bitcoin has been identified by major central banks, led by the US Federal Reserve, as a digital gold.
nextDisclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
