Strategy, formerly known as MicroStrategy, has announced the pricing of its $2 billion senior convertible note tranche to purchase more Bitcoin and fund operating expenses.
The notes will feature a 0% coupon and mature on March 1, 2030. Each $1,000 block of notes is convertible to 2.3072 shares of Strategy’s Class A common stock at $433.43 per share — a 35% premium over the current market price.
Both the conversion rate and the conversion price are subject to changes over time due to market conditions.
According to Strategy, the offering will be made to qualified institutional investors, who can collectively purchase $300 million in additional notes within five business days after the initial notes are issued.
The company’s corporate Bitcoin (BTC) acquisition plan continues to attract investor attention — drawing both praise and criticism from market participants for its levered approach to building its balance sheet.
Strategy continues accumulating and growing despite Q4 loss
Following MicroStrategy’s rebrand to Strategy on Feb. 5, BlackRock, the world’s largest asset manager, increased its stake in Strategy to 5%.
Shares of Strategy surged by approximately 2.8% on Feb. 7 after BlackRock, which has $11.6 trillion in assets under management, added to its Strategy position.
Strategy’s most recent Bitcoin acquisition occurred on Feb. 10, when it purchased 7,633 BTC, bringing its total holdings to 478,740 BTC, valued at approximately $46.4 billion.
According to SaylorTracker, Strategy is sitting on unrealized gains of over $15 billion and is up over 49% on its BTC investment.
12 states in the United States also collectively hold $330 million in Strategy stock as part of their state treasuries or pension programs.
California, Florida, Wisconsin, and North Carolina were among the US states with the highest Strategy allocations.
Strategy’s Q4 2024 earnings report disclosed that Strategy purchased an additional 218,887 BTC during Q4 2024, making it the company’s most aggressive BTC accumulation period on record.
The aggressive buying also coincided with a $670-million net loss for Strategy in the final quarter of 2024.