Strategy Launches $2 Billion Zero Interest Note Offering for Bitcoin Plans
Strategy announced its plans to offer $2 billion in convertible senior notes due 2030 according to their press release. The company made this announcement on February 18, 2025, in Tysons Corner, Virginia.
The zero-interest notes will be offered through a private placement to qualified institutional buyers under Rule 144A of the Securities Act. The company also plans to give initial purchasers an option to buy up to $300 million in additional notes within five business days of the first issuance.
The notes will mature on March 1, 2030, and holders can convert them into cash, Strategy's class A common stock, or a combination of both. The company maintains the right to choose the form of settlement. Starting March 5, 2027, Strategy can redeem the notes in cash if its stock price stays above 130% of the conversion price for a specific period.
Strategy's Bitcoin holdings and institutional appeal continue to grow. The company currently owns approximately 478,740 Bitcoin, valued at over $46 billion, representing about 2.5% of the total Bitcoin supply. Their Bitcoin holdings increased significantly in 2024, with 258,320 BTC added to their treasury. Their most recent Bitcoin purchase occurred between February 3 and February 9, 2025.
The investment climate for Bitcoin appears favorable, with twenty U.S. states reviewing legislation to add Bitcoin to their reserves, potentially investing $23 billion total. The company's approach has attracted significant institutional investors. Norway's central bank investment division, Norges Bank Investment Management, now holds Strategy shares worth $500 million. This investment has increased their indirect Bitcoin exposure from 2,446 BTC to 3,821 BTC in the second half of 2024.
Bitcoin could reach $120,000 by June 2025 and stabilize at this level until mid-autumn. This forecast is supported by growing institutional adoption and potential government investments. Large mining operations and long-term investors have set sell orders at $110,000 and $120,000, which could create natural resistance levels and help stabilize the price through mid-autumn.
For investors, the main benefits and risks of this offering include:
- No regular interest payments required
- Potential stock price appreciation gains
- Risk of share dilution if notes are converted to stock
- Market risk if Strategy's stock underperforms
The company plans to use the proceeds from this offering for general corporate purposes, including Bitcoin acquisition and working capital. Strategy will discuss the offering details in a live Video Webinar on February 19, 2025, at 10:00 a.m. Eastern Standard Time.
