Just In: Michael Saylor’s Strategy Expands Bitcoin Holdings with $2B Purchase

Michael Saylor’s Strategy, formely known as MicroStrategy has resumed its Bitcoin buying spree just a week after halting its BTC purchases and share sales. The company, now operating as “Strategy,” announced the acquisition of 20,356 bitcoins for approximately $1.99 billion.

Michael Saylor’s Strategy Expands Bitcoin Holdings with $2B Purchase

Michael Saylor’s Strategy, formely known as MicroStrategy has disclosed that it completed a $2 billion private offering of convertible senior notes due in 2030. The notes carry a 0% coupon and are convertible at a 35% premium over the current stock price.

The net proceeds from the offering amounted to approximately $1.99 billion after deducting expenses. The company stated that the funds would be used for general corporate purposes, including acquiring more Bitcoin.

The convertible notes allow investors to convert each $1,000 note into 2.3072 shares of Strategy’s Class A common stock at $433.43 per share. This price represents a premium over the recent market price. Additionally, the offering included an option for the initial purchasers to buy an extra $300 million in notes, available until February 27, 2025.

Bitcoin (BTC) Holdings Near 500,000 BTC

Between February 18 and February 23, Strategy acquired 20,356 Bitcoins at an average price of $97,514 per BTC after worries of halting of BTC purchases. The purchase was financed using the proceeds from the recent convertible notes offering.

As of February 23, 2025, the company holds approximately 499,096 Bitcoins, purchased for around $33.1 billion. The average acquisition price, including fees and expenses, stands at approximately $66,357 per Bitcoin. Subsquently, Michael Saylor’s Strategy remains the largest corporate holder of Bitcoin, continuing its strategy of accumulating the cryptocurrency through debt and equity offerings.

Alongside its Bitcoin acquisition update, Strategy announced that it did not sell any shares under its at-the-market (ATM) equity offering program between February 18 and February 23, 2025. The ATM program allows the company to issue shares to raise funds, but it opted not to do so during this period.

The decision to focus on convertible debt rather than equity sales aligns with the company’s ongoing “21/21 Plan.” This initiative aims to raise $42 billion over three years through a combination of fixed-income securities and equity to fund Bitcoin purchases. To date, Strategy has secured $20 billion toward this goal.

Market Performance and Financial Standing

Strategy’s stock (NASDAQ: MSTR) has exhibited high volatility, with a beta of 3.26. Over the past year, the stock has delivered a return of approximately 335.95%.

Despite the strong stock performance, InvestingPro data rates the company’s financial health as weak, citing short-term obligations that exceed its liquid assets.

As part of its financial strategy, the company also provided an update on its 0% Convertible Senior Notes due in 2027. As a result, it received conversion requests totaling approximately $857.4 million, resulting in the issuance of over 6 million shares upon settlement. The company remains focused on its Bitcoin accumulation strategy despite reporting a net loss of $670.8 million for the fourth quarter of 2024.