- Strategy raised $2 billion through senior convertible notes with 0% coupon rate.
- The company purchased 20,356 Bitcoin at an average price of $97,514 per coin.
- Notes are convertible to company shares at $433.43, representing a 35% premium.
- The convertible notes will mature on March 1, 2030.
- This purchase is part of Strategy’s broader “21/21 Plan” for Bitcoin acquisition.
Strategy, led by Bitcoin advocate Michael Saylor, has executed its largest cryptocurrency acquisition to date, purchasing 20,356 Bitcoin for approximately $1.99 billion as part of its ambitious “21/21 Plan” for digital asset accumulation.
The company successfully completed a $2 billion private offering of senior convertible notes on February 24, marking a significant milestone in corporate Bitcoin investment strategy. The notes, structured with a 0% coupon rate, provide investors the option to convert their holdings into company shares.
Each $1,000 note block can be converted into 2.3072 shares of Strategy’s Class A common stock, with a conversion price of $433.43 per share. This conversion rate represents a 35% premium above current market prices, indicating strong investor confidence in the company’s long-term vision.
The acquisition continues Strategy’s pattern of leveraging debt instruments to accumulate Bitcoin. This approach, pioneered by Saylor, has transformed the company from a business intelligence firm into one of the largest corporate holders of Bitcoin, with its holdings now reaching historical levels.
The “21/21 Plan,” referencing Bitcoin’s 21 million coin cap, demonstrates Strategy’s commitment to establishing itself as a major institutional player in the cryptocurrency space. The 0% coupon rate on the convertible notes suggests favorable market conditions for corporate Bitcoin investment despite the asset’s price volatility.
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