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