Strategy (NASDAQ: MSTR) has completed its offering of $2 billion in 0% convertible senior notes due 2030 through a private offering to qualified institutional buyers. Additionally, the company granted the initial purchasers of the notes an option to buy up to an additional $300 million aggregate principal amount of notes.
The notes do not bear regular interest, and the principal amount does not accrete, with a maturity date set for March 1, 2030. The initial conversion rate is 2.3072 shares of class A common stock per $1,000 principal amount of notes, representing an initial conversion price of approximately $433.43 per share of class A common stock, which reflects a premium of about 35% over the U.S. composite volume-weighted average price of Strategy's class A common stock from February 19, 2025.
The net proceeds from the offering were approximately $1.99 billion, which the company intends to use for general corporate purposes, including the acquisition of bitcoin and for working capital.
This move comes as Strategy, also known as MicroStrategy Incorporated, positions itself as the world’s first and largest bitcoin treasury company, advocating for bitcoin's role as digital capital while also providing AI-powered enterprise analytics software. The company believes its operational excellence, strategic bitcoin reserve, and focus on technological innovation position it as a leader in both the digital asset and enterprise analytics sectors, offering a unique opportunity for long-term value creation. Following these announcements, the company's shares moved -3.5%, and are now trading at a price of $289.24. If you want to know more, read the company's complete 8-K report here.
