Strategy intends to issue $2 billion convertible bonds to buy more Bitcoin

Author: Brayden Lindrea, CoinTelegraph; Translated by: Deng Tong, Golden Finance

The business intelligence service and Bitcoin buying company (formerly MicroStrategy) is seeking to raise another $2 billion with 0% priority convertible bonds to buy more Bitcoin.

In a Feb. 18 statement, Strategy said the first bond buyers have the option to buy additional bonds worth up to $300 million that can be used within five business days of issuance.

The company added that it intends to use the net proceeds from the issuance to buy more bitcoins and as working capital.

Advanced convertible notes are debt securities that can be converted into equity later. They take precedence over common stocks because holders have priority in bankruptcy or liquidation.

Advanced convertible notes have been one of the main tools Strategy uses to implement its 21/21 plan – the goal is to raise $42 billion in capital, split equity and fixed income securities over the next three years – to buy more Bitcoin .

The program is carefully planned by Strategy's executive chairman and co- founder Michael Saylor.

Since the announcement on October 30, the company has completed more than half of its $42 billion capital plan – it has purchased nearly 200,000 bitcoins since then, bringing its total reserves to 478,740 bitcoins and making it the largest in the world business bitcoin holders.

Key Bitcoin metrics displayed on Strategy's new website. Source: Strategy

Strategy said the proposed notes will expire on March 1, 2030 unless they are repurchased, redeemed or converted in advance and are “constrained by the market and other conditions.”

Strategy (MSTR)’s share price did not experience significant fluctuations due to the news. Google Finance data shows that MSTR fell slightly above 1% at the close of February 18, and after-hours trading remained flat.

However, Strategy shares have risen 372% in the past 12 months, becoming one of the best-performing stocks in the U.S. stock market over the past year.

Despite the purchase of Bitcoin and the rise in Bitcoin prices, Strategy reported a net loss of $670.8 million in the fourth quarter.