It is official! Michael Saylor has announced the completion of the $2 billion private note offering. To that end, Strategy is set to get more BTC in the future. Meanwhile the company has acquired 20,356 BTC for 1.99B. Now, holdings approach 500K BTC.
The notes feature a 0% coupon and mature on March 1, 2030, unless earlier repurchased, redeemed, or converted. Each $1,000 block of notes is convertible to 2.3072 shares of Strategy’s Class A common stock at $433.43 per share which is 35% more than the current market price.
Strategy has completed a $2 billion offering of convertible notes at 0% coupon and 35% premium, with an implied strike price of ~$433.43. $MSTR https://t.co/PsEdj3nm0i
— Michael Saylor⚡️ (@saylor) February 24, 2025
The firm announced, “Strategy intends to use the net proceeds from this offering for general corporate purposes, including the acquisition of Bitcoin and for working capital.” The company received about $1.99 billion from the sale of the notes after fees and expected costs were deducted.
In addition, as part of its “21/21 Plan,” Michael Saylor’s Strategy bought 20,356 Bitcoin for $1.99 billion, or $97,514 per coin. Strategy’s “21/21 Plan” targets $42 billion in capital over the next three years. It will be split between equity and fixed-income securities to buy more Bitcoin.
Strategy said it has already raised $20 billion of the $42 billion it needs to buy more Bitcoin. Most of that money came from senior convertible notes and debt.
Terms of 0% convertible senior notes due 2030
Individuals who own notes after December 3, 2029, will be able to convert them whenever they want until the end of business on the second trade day before the due date. Strategy will settle changes by giving or receiving cash, shares of its class A common stock, or a mix of cash and shares of its class A common stock, depending on the situation.
The conversion rate and conversion price are subject to customary adjustments upon the occurrence of certain events.
Strategy can choose to redeem the notes in whole or in part (with some restrictions) for cash at any time on or after March 5, 2027, and no later than the 20th trading day before the maturity date.
However, this can only happen if the last reported sale price per share of Strategy’s class A common stock is higher than 130% of the conversion price for a certain amount of time and other conditions are met. The price to redeem the notes will be equal to their initial amount plus any special or extra interest that has been earned but not paid up to the date of redemption.
In case of a fundamental change, noteholders may ask Strategy to buy back their notes for cash, with a few exceptions. The repurchase price will be the original amount of the notes being bought back, plus any special or extra interest that has been earned but not paid up to the date of the repurchase.
If noteholders want Strategy to buy back their notes on March 1, 2028, they can do so for a cash price equal to the principal amount of the notes being bought back plus any special or extra interest that has been earned but not paid up to the date of the repurchase.
Strategy’s Bitcoin portfolio is almost at 500K
The 20,356 BTC purchase has brought the company to an ownership of over $47 billion worth of Bitcoin now, with 499,096 of them held. Michael Saylor, co-founder and executive chairman of Strategy, says that the company bought all of its bitcoins at an average price of $66,357 each.
Strategy has acquired 20,356 BTC for ~$1.99B at ~$97,514 per bitcoin and has achieved BTC Yield of 6.9% YTD 2025. As of 2/23/2025, we hodl 499,096 $BTC acquired for ~$33.1 billion at ~$66,357 per bitcoin. $MSTR https://t.co/mNWDaXRE7N
— Michael Saylor⚡️ (@saylor) February 24, 2025
Michael Saylor announced on his X account, “As of 2/23/2025, we hodl 499,096 $BTC acquired for ~$33.1 billion at ~$66,357 per Bitcoin.” This means that the total cost of the purchases, including fees and costs, was about $33.1 billion. To put that in perspective, Strategy owns more than 2.3% of all 21 million bitcoins.
The company has bought about $23 billion worth of Bitcoin in just the last few months. They stopped buying bitcoin for 12 weeks while they released their Q4 numbers earlier this month, but they started buying it again after that.
Bankers on Wall Street are still pessimistic about the company, even though its bitcoin reserves are approaching 500,000 BTC. Some think the company’s purchase strategy is risky.
Strategy shares closed down 7.5% at $299.69 on Friday. Before the market opened on Thursday, its stock went up 1.7% to $323.96. On Wednesday, the shares dropped 4.6%, which was the most in almost a month. The stock has lost about 30% of its value since its high point in November, but it is still up more than 700% in the last three years.
In the past few months, Strategy shares have become less volatile. Bloomberg estimates show that the stock’s 30-day volatility is now less than half of what it was at its peak in December.
That could affect the demand from some hedge funds that buy Strategy shares to make deals that involve buying bonds and selling shares short, which is the same thing as betting on how volatile the underlying stock is.
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