Strategy announces $2 billion convertible note offering to fuel future bitcoin purchases

Hours after issuing a profitability warning, Strategy (formerly known as MicroStrategy) said Tuesday it intends to offer $2 billion in convertible senior notes with 0% interest. Strategy intends to use the proceeds from this offering for general corporate purposes, including the acquisition of bitcoin. 

The notes mature on March 1, 2030, unless repurchased, redeemed, or converted earlier. Strategy will settle conversions in cash, class A common stock, or both, according to the release. Strategy also plans to grant initial purchasers options to buy up to $300 million in additional notes within five business days of issuance.

Earlier Tuesday, the bitcoin treasury company issued a profitability warning amid a potentially greater tax burden in a 10-K filing with the U.S. Securities and Exchange Commission.

"Reflecting on generating a net loss for the fiscal year ended Dec. 31, 2024, primarily due to $1.79 billion of digital asset impairment losses, Strategy warned it 'may not be able to regain profitability in future periods,' particularly if it incurs significant fair value losses related to it bitcoin holdings," The Block's James Hunt reported. "A significant decrease in the market value of its bitcoin could adversely affect the firm’s ability to satisfy its financial obligations."

Strategy acquired a total of approximately 258,320 BTC in 2024. Following its latest acquisition between Feb. 3-9, the company now holds 478,740 BTC, worth over $46 billion.