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The post Crypto News: Strategy Announces Proposed Private Offering of $2.0B of Convertible Senior Notes appeared first on Coinpedia Fintech News Strategy has announced its intention to offer $2.0 billion in 0% convertible senior notes due 2030 in a private offering to qualified institutional buyers under Rule 144A of the Securities Act of 1933. This move comes as part of Strategy’s ongoing efforts to raise capital for its strategic initiatives, including the acquisition of Bitcoin and general corporate purposes. “Strategy also expects to grant to the initial purchasers of the notes an option to purchase, for settlement within a period of five business days from, and including, the date on which the notes are first issued, up to an additional $300 million aggregate principal amount of notes,” the company said. The notes are unsecured, senior obligations of Strategy, and will not accrue regular interest. The notes will mature on March 1, 2030, unless repurchased, redeemed, or converted earlier. Noteholders will have the option to convert the notes into cash, shares of Strategy’s class A common stock, or a combination of both, depending on Strategy’s election. The offering is contingent upon market conditions and there is no guarantee that it will proceed as planned. The company has indicated that it intends to use the net proceeds from the offering primarily for Bitcoin acquisitions and working capital needs. The convertible notes will be redeemable by Strategy at any time after March 5, 2027, under certain conditions, and in the event of specific corporate changes, noteholders may require Strategy to repurchase their notes for cash. Strategy is also hosting a video webinar at 10:00 AM EST on February 19, 2025, for qualified institutional buyers who are interested in learning more about the offering. To participate in the webinar, prospective investors must complete an investor survey on Strategy’s website.

Michael Saylor’s Strategy is going all in—again. The company announced on Tuesday that it is raising $2 billion in 0% convertible senior notes to buy more Bitcoin, betting even bigger on the long-term value of its holdings. The debt offering, open only to qualified institutional buyers, includes an option to raise an extra $300 million if demand is high. The notes mature in 2030, won’t pay interest, and won’t increase in value over time, according to Strategy’s announcement. Investors can convert them into cash or shares of Strategy’s stock, depending on what the company decides. The notes are redeemable starting in 2027, but only if Strategy’s stock price surpasses 130% of the conversion price for a set period. If that happens, Strategy can buy back the notes at face value plus any special interest owed, per the announcement. If Strategy faces a fundamental change, such as a major acquisition or restructuring, investors can demand repayment on March 1, 2028. The conversion rate and final terms will be determined at pricing, based on Strategy’s stock performance on the day the deal is finalized. Bitcoin acquisition and debt strategy Strategy has been using debt to buy Bitcoin for years, and this latest one actually follows a pattern: raise cash, buy Bitcoin, and wait for the price to rise. The company plans to use the $2 billion for general corporate expenses, but its real focus is accumulating more Bitcoin. In 2024, Strategy bought 258,320 BTC for $22.07 billion, paying an average of $85,447 per Bitcoin, including fees. The company didn’t sell a single Bitcoin, despite price fluctuations. As of December 31, 2024, Strategy held 447,470 BTC, valued at $23.9 billion. But its outstanding debt hit $7.27 billion, with $35.1 million in annual interest costs. The company posted a net loss for 2024, mostly due to $1.79 billion in Bitcoin impairment losses. If Bitcoin’s market price crashes, Strategy’s ability to meet financial obligations could be at risk. The company warned in a 10-K SEC filing that it “may not be able to regain profitability” if Bitcoin’s fair value continues to drop. Strategy has been dealing with old accounting rules that force companies to write down Bitcoin losses, but never adjust gains unless sold. That changes in January 2025 with new FASB fair-value accounting rules. Gains and losses will now be recorded in net income each quarter, creating massive fluctuations in reported profits. The new rules will immediately apply a $12.75 billion adjustment to Strategy’s retained earnings. But there’s a catch: tax liabilities could surge. The company warned that unrealized Bitcoin gains might trigger the 15% Corporate Alternative Minimum Tax (CAMT) under the Inflation Reduction Act of 2022. “If we become subject to the CAMT, it could result in a material tax obligation that we would need to satisfy in cash,” Strategy said. The tax applies to companies with over $1 billion in annual adjusted financial income, and unless the law is amended, Strategy could owe huge taxes by 2026. The company also faces tax risks across multiple jurisdictions, with uncertainty around deferred tax assets and liabilities, as selling Bitcoin at higher prices than its cost basis will likely trigger some serious capital gains taxes. Strategy’s debt offering is private—only qualified institutional buyers under Rule 144A can participate. The notes won’t be registered with the SEC and can’t be publicly sold without an exemption. Investors interested in the deal must attend a live webinar on February 19, 2025, where the company will go over terms, risks, and expectations. “Access to the Video Webinar and completion of the investor survey does not mean you will receive an allocation in this proposed convertible notes offering,” Strategy clarified today. Cryptopolitan Academy: How to Write a Web3 Resume That Lands Interviews - FREE Cheat Sheet

🔵 Is Chainlink ($LINK) Price Set to Trigger Bullish Reversal as MVRV Flashes Buy Signal? Chainlink price is poised for an up to 312% rally after the MVRV ratio dropped to -16.3%. suggesting that the price may have bottomed. Chainlink price is on the verge of a major bullish reversal after its Market Value to Realized Value (MVRV) ratio flipped negative. Historical trends indicate that this decline precedes a run-up that could lead to a 312% rally.  This bullish setup presents a buy signal for LINK, which trades at $18.08 today with a marginal decline of 0.85%.  🔸 Chainlink Price Could Explode 300% to $54 According to analyst Ali Charts on X, Chainlink price tends to rebound whenever the MVRV drops below -16%. This indicator has since dropped to -16.3%, indicating that most traders are sitting at a loss.  In his analysis, Ali Charts noted that in August 2023, LINK rallied by 312% within four months after the MVRV bottomed. Similar gains, albeit smaller, were also seen in 2024. If history rhymes and this dip signals a buying opportunity, LINK’s price today could be headed for a strong rebound.  Whenever the MVRV drops below 0%, like in this case, it leads to reduced selling pressure as traders become hesitant to sell at a loss. Additionally, this drop could mark the start of an accumulation phase by buyers looking to buy at low prices. This setup gives it the leeway for a rebound, with a liberal Chainlink price forecast using past MVRV trends suggesting an over 300% rally.  🔸 Key Levels to Watch in Chainlink Price  According to IntoTheBlock’s In Out of the Money indicator, most traders that are Out of the Money (in losses) bought LINK at the $20-26 zone. 43,000 traders also bought 70M LINK between $18.27 and $19.88, with this level acting as an immediate resistance level.  The altcoin’s potential rally as outlined by the MVRV ratio depends on the traders who bought at these key zones not selling once they become profitable.  On the other hand, the $14.40-$16.93 zone where 157M LINK tokens were bought acts as a strong support. Due to the high volumes accumulated at these levels, it could act as a buying zone, with buyers defending this support if LINK retraces.  🔸 Whales Accumulate $20M LINK: Time for a Breakout? Chainlink whales are accumulating at the current price after purchasing 1.01M LINK tokens valued at around $20M. This purchase comes amid LINK’s rangebound trading between the $17 and $19 price levels.  LINK’s breakout from this range is contingent upon a swing above the middle Bollinger band at $19.52. In case of a breakout, LINK could resume an upward momentum.  Furthermore, the Moving Average Convergence Divergence (MACD) line has converged with the signal line from below but lacks a clear breakout. Traders should watch for a move of the MACD line above the signal line, to confirm a buy signal.  The recent whale purchase will not only aid LINK’s breakout from consolidation but also mark the start of an accumulation phase. This could precede a strong breakout for Chainlink price towards $23.

Former Coinbase CTO predicts STOs will be more viable than IPOs or M&As for small firms Balaji Srinivasan, the former chief technology officer (CTO) of crypto exchange Coinbase, recently suggested on X that using a securities token offering (STO) could be easier for small firms to raise funds than traditional methods like initial public offerings (IPOs) or mergers and acquisitions (M&As) under the Trump administration. He pointed out that the Sarbanes–Oxley Act of 2002 imposed by the U.S. Securities and Exchange Commission (SEC) has made it burdensome for smaller companies to go public. Furthermore, he noted that under Lina Khan's leadership at the Federal Trade Commission (FTC), there has been a shift toward blocking major M&As to prevent large companies from overpowering smaller ones—a policy stance Srinivasan opposes but notes the Trump administration has also adopted. With the current U.S. administration being more receptive to cryptocurrency, Srinivasan argues that STOs present a viable alternative for fundraising. Unlike other methods, STOs allow global investors to back U.S.-based startups through cryptocurrencies, without taking ownership stakes, thus enabling these smaller companies to remain independent for a longer period, he said.

Software intelligence firm Microstrategy (Nasdaq: MSTR), now rebranded as Strategy, announced on Feb. 18 that it intends to offer $2 billion in convertible senior notes due 2030 in a private offering. The offering, subject to market conditions, will be made to qualified institutional buyers under Rule 144A of the Securities Act. The company explained: Strategy intends to use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin and for working capital. These 0% interest-bearing notes will be senior, unsecured obligations of Strategy and will mature on March 1, 2030, unless repurchased, redeemed, or converted earlier. Investors will have the option to convert the notes into cash, shares of Strategy’s class A common stock, or a combination of both, at Strategy’s discretion. Additionally, the company has granted an option to initial purchasers to buy up to an additional $300 million in notes. Strategy reserves the right to redeem the notes for cash, in whole or in part, on or after March 5, 2027, but only if its stock price exceeds 130% of the conversion price for a specified period. Furthermore, noteholders may require Strategy to repurchase the notes in the event of a fundamental corporate change or on March 1, 2028. Microstrategy’s move aligns with its long-term vision as the world’s largest bitcoin treasury company, continuing its strategy of using equity and debt financing to accumulate bitcoin as its primary treasury reserve asset. While maintaining its leadership in AI-powered enterprise analytics, the company believes this approach offers investors diversified exposure to bitcoin through various financial instruments. As of Feb. 17, the company hodls 478,740 BTC acquired for $31.1 billion at $65,033 per bitcoin. Co-founder and Executive Chairman Michael Saylor remains a vocal advocate for bitcoin, projecting that its price could reach $13 million by 2045. His estimates range from a bullish case of $49 million to a bearish scenario of $3 million, reinforcing his view of bitcoin as the ultimate digital asset for long-term value creation. 免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。