Michael Saylor’s Strategy Eyes $2 Billion Convertible Debt Offering to Boost Bitcoin Holdings

Michael Saylor’s Bitcoin-focused company, Strategy, has announced plans to raise $2 billion through a convertible debt offering, reinforcing its aggressive approach to accumulating Bitcoin.

New Fundraising Strategy to Fuel Bitcoin Acquisitions

The company, formerly known as MicroStrategy Inc., will issue zero-coupon senior notes due 2030, according to a statement released Tuesday. Proceeds from the offering will be used to purchase more Bitcoin, among other corporate purposes.

This move follows a brief pause in Bitcoin purchases last week, marking a deviation from Strategy’s pattern of consistently raising funds through stock sales or debt to acquire Bitcoin. Notably, the company has announced Bitcoin purchases in 12 of the past 14 weeks.

Convertible Debt Structure & Market Response

The convertible notes are expected to carry a 40%-50% conversion premium and feature a three-year put option, allowing investors to redeem the bonds before maturity. Hedge funds have played a significant role in previous debt issuances, employing strategies that involve buying bonds while short-selling shares to capitalize on the stock’s volatility.

Strategy’s Bitcoin Holdings & Stock Performance

Despite a 30% decline from its November all-time high, Strategy’s stock remains up over 700% in the past three years. As of February 17, the company holds 478,740 BTC, representing more than 2.5% of Bitcoin’s total supply—an amount valued at over $45 billion.

Long-Term Plan: $42 Billion Capital Raise

Strategy’s broader vision includes raising $42 billion by 2027 through at-the-market stock sales and fixed-income instruments, continuing its mission to expand its Bitcoin treasury.

The company has also reduced its workforce by 20% (400 positions) to 1,534 employees, according to its latest annual report.

Upcoming Investor Call

Strategy will host a live webinar on Wednesday at 10 a.m. (New York time) to discuss the offering, providing insights into its ongoing Bitcoin acquisition strategy.