Catenaa, Wednesday, February 19, 2025 – Strategy, formerly known as MicroStrategy, announced plans Tuesday to raise $2 billion through a convertible senior note offering, with proceeds earmarked for corporate purposes, including further bitcoin acquisitions.
The notes, carrying a 0% interest rate, will mature on March 1, 2030, unless repurchased, redeemed, or converted earlier, the company said. Conversions may be settled in cash, class A common stock, or both. Initial purchasers will have the option to buy up to an additional $300 million in notes within five business days of issuance.
The announcement came just hours after Strategy issued a profitability warning in a 10-K filing with the U.S. Securities and Exchange Commission. The firm reported a net loss for 2024, citing $1.79 billion in digital asset impairment losses and cautioning that it may struggle to return to profitability, particularly if bitcoin’s fair value declines.
Strategy has aggressively expanded its bitcoin holdings, acquiring approximately 258,320 BTC in 2024 alone. As of its latest purchase between Feb. 3-9, the company now holds 478,740 BTC, valued at over $46 billion.
Despite the financial warning, Strategy remains committed to its bitcoin strategy, positioning itself as the largest corporate holder of the digital asset.
