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Ruholamin Haqshanas
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Ruholamin Haqshanas
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Strategy, the business intelligence and Bitcoin acquisition firm formerly known as MicroStrategy, has announced plans to raise $2 billion through 0% senior convertible notes to further expand its Bitcoin holdings.
According to a Feb. 18 statement, the company also granted initial note buyers an option to purchase an additional $300 million worth of notes within five business days after issuance.
The company stated that net proceeds from the offering will primarily fund new Bitcoin acquisitions, with a portion allocated for general working capital.
Strategy’s $2B Fundraising Push Supports Ambitious $42B Bitcoin Accumulation Plan
The latest fundraising effort aligns with Strategy’s ambitious 21/21 Plan, designed to raise $42 billion over three years through a mix of equity and fixed-income securities to bolster its Bitcoin portfolio.
The plan, spearheaded by Michael Saylor, the company’s executive chairman and co-founder, has already seen over half of the targeted capital raised since its launch on Oct. 30.
Since implementing the strategy, Strategy has acquired nearly 200,000 Bitcoin, bringing its total holdings to approximately 478,740 BTC, making it the largest corporate holder of Bitcoin globally, according to data from BitBo’s BitcoinTreasuries.NET.
Senior convertible notes are a form of debt security that provides investors the option to convert their holdings into equity at a later date.
These notes carry seniority over common stock in the event of bankruptcy or liquidation, offering bondholders a higher claim on the company’s assets.
The newly proposed convertible notes are scheduled to mature on March 1, 2030, unless repurchased, redeemed, or converted earlier, and their issuance is subject to market conditions and other factors.
Despite aggressive Bitcoin accumulation, Strategy reported a $670.8 million net loss in Q4, even as Bitcoin’s price climbed.
On the market front, Strategy’s (MSTR) stock dipped slightly, closing down 1% on Feb. 18 and remaining flat in after-hours trading, according to Google Finance.
Still, the company’s stock has soared 372% over the past year, positioning it among the top-performing U.S. stocks over the last 12 months.
West Virginia Senator Proposes Bill to Allow State Treasury Investments in Crypto and Gold
Last week, West Virginia State Senator Chris Rose introduced the Inflation Protection Act of 2025, a bill that would permit the state treasury to allocate a portion of its funds to digital assets and precious metals.
On January 23, former U.S. President Donald Trump commissioned a working group to explore the feasibility of a federal digital asset reserve, prompting a wave of similar initiatives at the state level.
Utah has already made progress on this front.
On February 6, the Utah House of Representatives passed a bill allowing the state treasury to invest in Bitcoin, select altcoins, and stablecoins. The bill is now under consideration in the Utah Senate.
The same day, Kentucky joined the movement by introducing a bill that would permit up to 10% of state funds to be invested in digital assets, including Bitcoin.
As reported, a dozen U.S. states have invested in Strategy, the company formerly known as MicroStrategy, with state pension funds and treasuries collectively holding $330 million worth of its stock as of the end of 2024.
California’s State Teachers Retirement System fund holds the largest stake, with 285,785 shares valued at approximately $83 million, based on the Feb. 14 filing with the U.S. Securities and Exchange Commission (SEC).
The retirement fund, which manages $69 billion in stock investments, also owns 306,215 shares of Coinbase (COIN), worth $76 million at the time of the filing.
