Strategy (formerly MicroStrategy) has completed a $2 billion convertible senior notes offering and allocated the entire proceeds to acquire Bitcoin. The company purchased an additional **20,356 BTC** at an average price of **$97,514 per Bitcoin. As of February 23, 2025, Strategy holds 499,096 BTC acquired at a total cost of $33.1 billion**, with an average cost basis of **$66,357 per BTC**.
Key Details of Strategy’s $2 Billion Convertible Notes Offering
Strategy successfully issued $2 billion in 0% interest convertible senior notes due in 2030. Key terms include:
- Maturity Date: March 1, 2030
- Coupon Rate: 0%
- Conversion Price: $433.43 per share (representing a 35% premium over the stock price at issuance)
- Investor Put Option: Under specific conditions, noteholders may sell the bonds back at par value (100) after March 1, 2028.
- Soft Call Provision: Strategy may redeem the notes at par value (100) after March 5, 2027, under certain circumstances.
This financial instrument allows Strategy to raise capital at minimal interest costs while providing investors potential equity upside.
Bitcoin Acquisition and Treasury Holdings
Following the fundraising, Strategy deployed $1.99 billion to purchase 20,356 BTC, reinforcing its position as the largest corporate holder of Bitcoin.
Current Bitcoin Holdings (As of February 2025):
| Metric | Value |
|---|---|
| Total BTC Held | 499,096 |
| Total Investment | $33.1 billion |
| Average Purchase Cost | $66,357 per BTC |
| Recent Purchase Cost | $97,514 per BTC |
👉 Why corporations are turning to Bitcoin as a treasury asset
Bitcoin’s year-to-date return in 2025 stands at 6.9%, highlighting its volatility and long-term growth potential.
FAQs: Strategy’s Bitcoin Strategy
1. Why does Strategy keep buying Bitcoin?
Strategy views Bitcoin as a superior store of value compared to traditional cash reserves, aiming to hedge against inflation and capitalize on long-term appreciation.
2. How does the convertible notes offering benefit Strategy?
The 0% interest structure reduces borrowing costs, while the equity conversion option aligns investor incentives with Strategy’s stock performance.
3. What risks are associated with Strategy’s Bitcoin holdings?
Bitcoin’s price volatility could lead to significant unrealized losses. However, Strategy’s long-term holding strategy mitigates short-term market fluctuations.
4. What is the significance of the 35% conversion premium?
The premium reflects investor confidence in Strategy’s stock appreciation potential, balancing dilution risk for existing shareholders.
👉 Explore Bitcoin investment strategies for institutions
Risk Disclosure
Cryptocurrency investments carry high volatility and risk. Prices may fluctuate drastically, potentially resulting in total capital loss. Conduct thorough risk assessment before investing.
Note: All figures are based on publicly disclosed data as of February 2025.