Strategy, the company formerly known as MicroStrategy, is continuing its aggressive Bitcoin acquisition strategy. In its latest move, the firm announced plans to raise $2 billion through zero-coupon convertible bonds to purchase even more Bitcoin. The announcement underscores Strategy’s commitment to positioning itself as the ultimate Bitcoin treasury.
A Financial Play
The $2-billion bond issuance is part of Strategy’s broader “21/21 Plan,” which aims to secure $42 billion for Bitcoin investments. This strategy involves raising $21 billion via equity and another $21 billion through fixed-income securities. The bonds issued in this round will mature in March 2030, and holders will have the option to convert them into company stock at a 35% premium over the current share price.
Strategy Announces Pricing of Convertible Senior Notes Offering $MSTR https://t.co/douBzi3hKb
— Michael Saylor⚡️ (@saylor) February 20, 2025
These convertible bonds will be available to qualified institutional investors, with an option to expand the offering by an additional $300 million. Notably, they come with a 0% coupon rate, meaning they do not pay periodic interest but offer potential value through stock conversion.
Bitcoin: The Core Business Model
Originally a business intelligence software firm, Strategy has reinvented itself as a Bitcoin holding company. Since its first Bitcoin purchase in 2020, Strategy has amassed an enormous BTC reserve. As of February 2025, the company holds 478,740 BTC, valued at over $47 billion. Given that it spent approximately $31.1 billion to acquire these holdings, Strategy is sitting on an unrealized gain exceeding $15 billion.
New ₿rand, Same Strategy pic.twitter.com/r1LD5FdEjJ
— Michael Saylor⚡️ (@saylor) February 5, 2025
Michael Saylor, the company’s co-founder and executive chairman, has been the driving force behind this transition. He has long advocated for Bitcoin as an inflation hedge and a superior store of value compared to traditional assets. By continuously leveraging debt and equity to acquire more Bitcoin, Strategy has become the world’s largest corporate BTC holder.
Strategy’s stock (NASDAQ: MSTR) has seen remarkable growth, skyrocketing from $14.44 in August 2020—when the company made its first Bitcoin purchase—to around $323 per share today. This dramatic 2,136% increase highlights the market’s response to the company’s Bitcoin-centric approach.
Additionally, institutional players are taking notice. BlackRock, the world’s largest asset manager, recently increased its stake in Strategy to 5%, signaling confidence in the firm’s aggressive Bitcoin strategy. Furthermore, multiple U.S. state treasuries and pension programs collectively hold $330 million worth of Strategy stock, further legitimizing the company’s approach.
Balancing Growth with Risk
Despite its impressive Bitcoin holdings and stock performance, Strategy’s approach is not without risks. The company reported a $670-million net loss in Q4 2024, a direct consequence of its aggressive Bitcoin accumulation. While its BTC strategy has yielded significant gains, it also exposes Strategy to market volatility and regulatory scrutiny.
Nevertheless, with Bitcoin’s price hovering around $98,500, Strategy’s confidence in the asset remains unwavering. As it continues to push forward with its 21/21 Plan, the company is doubling down on its vision: becoming the ultimate corporate Bitcoin entity.
HODL Team
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