Strategy plans to issue $2 billion in convertible senior notes to increase its Bitcoin holdings

Odaily News Bitcoin finance company Strategy (formerly MicroStrategy) said on Tuesday that it plans to issue $2 billion in convertible senior notes with an interest rate of 0%. Strategy intends to use the proceeds from the offering for general corporate purposes, including the acquisition of Bitcoin.
The notes will mature on March 1, 2030, unless earlier repurchased, redeemed or converted. Strategy will settle conversions in cash, Class A common stock or both. Strategy also plans to grant the initial purchasers an option to purchase up to $300 million of additional notes within five business days of the issuance. (The Block)
Earlier news, Strategy (formerly MicroStrategy) submitted its 10-K annual report on February 18, showing that the company recorded a net loss in fiscal 2024 due to $1.79 billion in digital asset impairment losses. It also warned that if the market value of Bitcoin falls sharply, it may not be able to return to profitability in future periods and may affect its ability to fulfill its financial obligations. According to the Inflation Reduction Act, the unrealized fair value gains of its Bitcoin holdings may be subject to a 15% corporate alternative minimum tax (CAMT).