Strategy Raises $2B in Convertible Notes for Growth and Acquisitions
1min read Strategy, formerly known as MicroStrategy, has announced a private offering of $2 billion in aggregate principal amount of its 0% convertible senior notes due 2030. The company expects to grant to the initial purchasers of the notes an option to purchase up to an additional $300 million in aggregate principal amount of the notes.
The offering is subject to market conditions and other factors, and there can be no assurance as to whether or when the offering may be completed. The notes will be senior unsecured obligations of Strategy, and will be guaranteed by certain of its subsidiaries.
The company plans to use the net proceeds from the offering for general corporate purposes, including working capital, capital expenditures, and potential acquisitions or strategic investments. The offering is expected to close on or about March 17, 2023, subject to customary closing conditions.
Strategy's stock price has been volatile in recent months, with a 52-week range of $175.00 to $593.00. The company's market capitalization is currently around $14 billion, and its price-to-earnings ratio is approximately 12. The company has a strong balance sheet, with a significant amount of cash and investments on hand.
The company's recent name change from MicroStrategy to Strategy reflects its broader focus on strategic analytics and business intelligence. The company's software platform enables organizations to analyze large amounts of data and make data-driven decisions.
The offering of convertible senior notes is a strategic move by Strategy to raise capital and strengthen its balance sheet. The company's focus on strategic analytics and business intelligence positions it well to capitalize on the growing demand for data-driven decision-making in the digital age.
