Strategy announces $2 billion senior convertible notes to purchase more Bitcoin

Strategy, the company of Michael Saylor, has announced a new tranche of senior convertible notes worth $2 billion, to purchase more Bitcoin. 

Strategy and the price of the $2 billion senior convertible notes to buy Bitcoin

Strategy, Michael Saylor’s company, has announced the pricing of its 2 billion dollar tranche of convertible senior notes. 

In practice, the notes will have a 0% coupon and will mature on March 1, 2030. Each block of 1,000 dollars is convertible into 2.3072 Class A common shares of Strategy at 433.43 dollars per share, a premium of 35% compared to the current market price.

Both the conversion rate and the conversion price are subject to changes over time due to market conditions.

This new bond offering had been announced a couple of days ago, as an additional financing plan for the company to increase its reserves in BTC.

At the moment, according to the data from saylortraker, the company holds a total of 478,740 BTC, equivalent to 47.15 billion dollars. The latest purchase of BTC appears to have been made on February 10 for a total of 7,633 BTC.

Strategy: the rebrand of MicroStrategy and the BTC logo

At the beginning of February, MicroStrategy officially changed its name to Strategy, as a monumental shift in its identity associated with Bitcoin.

In fact, in addition to changing its name, Michael Saylor’s company has also integrated the Bitcoin symbol into its logo. 

This rebrand comes after over 30 years of activity as MicroStrategy, with the goal of renewing itself in a new corporate core-business, which is reflected in the strategic management of data and digital assets. 

Not only that, the integration of the Bitcoin logo has been described by Saylor as a strong intent of the company to be a pioneer in the management and accumulation of BTC. 

The $2 billion senior convertible notes of Strategy and the 21/21 plan

With the new tranche of senior convertible notes worth 2 billion dollars, Strategy continues to pursue its so-called “21/21 plan”. 

Announced last October 2024, this plan foresees that Strategy manages to raise as much as 42 billion dollars to buy more bitcoin.

In practice, the company is preparing to raise 21 billion dollars in equity and 21 billion dollars in fixed income securities. 

The 21/21 plan of Strategy should be able to be realized within three years from its announcement, that is by 2027.