MicroStrategy Raises $2B for Bitcoin; OKX Settles with U.S. Authorities

Crypto Roundup: February 25, 2025

In a significant development, MicroStrategy, formerly known as Strategy, raised $2 billion through a convertible note offering to purchase additional Bitcoin (BTC). While the headline figures are impressive, the reduced conversion premium and discounted pricing on a preferred stock offering in January have raised eyebrows among industry observers.

Prominent cryptocurrency exchange OKX has reached a settlement with U.S. authorities over its failure to secure the necessary licenses to operate as a money transmitter. The OKX affiliate, Aux Cayes Fintech Co. Ltd, has agreed to pay $500 million in penalties and forfeited fees. The settlement also resolves allegations of fraudulent and non-compliant activities at the exchange, which facilitated over $5 billion in suspicious transactions and criminal proceeds.

Ethereum developers deployed the Pectra upgrade on the Holesky test network at epoch 115,968, marking the first major step in stress-testing the upgrade before its launch on Ethereum's mainnet. However, the upgrade encountered technical challenges, with the network slot not yet finalized at the moment of activation. Ethereum developers are currently investigating the root cause of the issue.

The market is showing signs of fatigue regarding crypto-linked equity issuance. Various publicly-listed companies, including MicroStrategy, MARA Holdings, Core Scientific, and Riot Platforms, have resorted to issuing debt and/or equity to raise funds for additional BTC purchases. According to Bank of America, these offerings now account for roughly 19% of U.S. equity-linked issuance. Manoj Shivdasani, founder and head of research at GSR Research, has suggested that the recent pricing of these deals indicates market fatigue. Since the start of 2024, approximately $17 billion has been raised through equity-linked products by companies directly involved in the cryptocurrency space, raising concerns about potential market saturation.

The crypto market continues to evolve, with both challenges and opportunities presenting themselves. As the industry grows and matures, it is essential to stay informed about the latest developments and trends.