Strategy, the business intelligence firm, long headed by the creator of the 21 rules of Bitcoin, Michael Saylor, is making another big move to buy more Bitcoin. The company, which was formerly known as MicroStrategy, already holds 478,730 BTC—over 2% of all Bitcoin that will ever exist. Now, it’s planning to raise another $2 billion, which could allow it to add more than 20,000 Bitcoin at current prices.
A Big Bet on Bitcoin
Strategy has fully committed to Bitcoin and is using every available method to buy more. The company has been borrowing money and selling shares to fund these purchases. This is part of its 21/21 Plan, announced in late 2024, which aims to invest $42 billion in Bitcoin over three years. Half of this amount will come from selling company stock, while the other half will be raised through borrowing.
Now, the company is preparing for another round of fundraising. It plans to issue $2 billion in convertible bonds, a type of debt that can be turned into shares later. On top of that, it will borrow money at a 0% interest rate. If everything goes as planned, this could add a huge amount of Bitcoin to Strategy’s holdings.
Strategy Announces Proposed Private Offering of $2.0B of Convertible Senior Notes. $MSTR https://t.co/EBOMdLlgdq
— Michael Saylor⚡️ (@saylor) February 18, 2025
What Are Convertible Bonds?
Convertible bonds are a way for companies to raise money without immediately giving up ownership. Investors buy these bonds with the option to convert them into shares later. If the company performs well, bondholders can switch to stock and potentially make a profit. If things don’t go as expected, they still have priority in getting repaid if the company runs into financial trouble.
Strategy has been using convertible bonds as a key tool for buying Bitcoin. Since announcing the 21/21 Plan in October, the company has already secured half of the $42 billion it plans to invest. At this pace, Strategy is on track to become the largest corporate holder of Bitcoin by a wide margin.
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