Strategy aims to raise $2 billion in additional funding through a private offering of 0% convertible senior notes.
In a statement, the largest corporate holder of Bitcoin (BTC) says the proceeds will be used for general corporate purposes, including the acquisition of the flagship crypto asset and working capital.
“Strategy estimates that the net proceeds from the offering will be approximately $1.99 billion (or approximately $2.28 billion if the initial purchasers fully exercise their option to purchase additional notes), after deducting fees and estimated expenses.”
A senior convertible note is a debt security that can be converted into a predetermined amount of the issuer’s shares. These notes have a maturity date when they have to be repaid either in cash or through conversion into equity.
Strategy, formerly known as MicroStrategy, says the notes will not bear regular interest and will mature on March 1st, 2030 unless repurchased, redeemed, or converted.
“The initial conversion rate is 2.3072 shares of class A common stock per $1,000 principal amount of notes, which represents an initial conversion price of approximately $433.43 per share of class A common stock.”
Strategy says the offering is expected to close on February 21st.
Data from Bitcoin Treasuries indicates that Strategy currently holds 478,740 BTC worth over $47 billion.
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