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Strategy's $2B Bitcoin-Backed Bond: A New Chapter in Crypto Finance

Coin WorldThursday, Feb 20, 2025 11:12 am ET

1min read

Strategy, a leading technology company, has announced the pricing of a $2 billion debt issuance with a 35% premium. This issuance is one of the largest by the company since it adopted Bitcoin as its primary treasury reserve asset in 2020.

The zero-interest convertible senior notes are set to mature in 2030 and will be offered through a private placement to institutional investors. Strategy has granted initial purchasers an option for an additional $300 million, potentially bringing the total offering to $2.3 billion. The offering is expected to close on February 21, 2025, subject to customary conditions.

This issuance marks Strategy's second-largest bond offering since adopting Bitcoin as its primary treasury reserve asset in 2020. In November 2024, the company issued a $3 billion convertible bond with a 55% conversion premium, maturing in 2029.

Strategy currently maintains a market capitalization of $80.5 billion. The company holds 478,740 Bitcoins, including 258,320 Bitcoins acquired in 2024 and 7,633 Bitcoins purchased between February 3 and February 9, 2025.

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Jazzlike-Check9040

02/20

Anyone else think this could set a precedent for other companies to follow? Maybe we'll see a crypto finance boom soon.

lookingforfinaltix

This bond offering could close at $2.3B if the option is exercised. That's a lot of digital dollars tied up in BTC.

mayorolivia

@lookingforfinaltix That's a huge BTC play. Solid move by Strategy.

LarryFromNYC

@lookingforfinaltix $2.3B? Insane. Just gotta hope it doesn't tank.

joe_bidens_underwear

Strategy's moves remind me of $TSLA's early days. Big bets on future growth. Wonder if this will attract more institutional investors.

solidpaddy74

Strategy doubling down on Bitcoin, huh? 🚀 Might add these bonds to my crypto portfolio, looking for that sweet 35% premium.

donutloop

35% premium feels risky, but institutions might see something I don't. Always good to follow the smart money.

Virtual_Information3

@donutloop True, 35% premium is risky, but institutions know more.

Beetlejuice_hero

Money mouth face thinking about that 35% premium. 😋 Strategy's definitely playing the long game with this bond.

NinjaImaginary2775

Strategy's got $80.5B market cap and 478,740 Bitcoins. What's their play? Are they betting big on BTC being gold 2.0?

vivifcgb

Zero-interest convertible senior notes sound fancy. Is this the future of crypto finance or just another flash in the pan?

Sgsfsf

I'm holding BTC and a few altcoins. Strategy's moves make me think I should diversify into more crypto-backed bonds. Thoughts?

Snorkx

$2B bond with a 35% premium? That's some serious cheddar. Wondering if this will boost BTC price in the long run.

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