- Michael Saylor announced on Twitter that Strategy did not raise funds from its class A common stock or purchase Bitcoin this week, raising eyebrows in the investment community
- Despite the pause in Bitcoin purchases, Strategy is planning to raise $2 billion in convertible senior notes due 2030, with an option for an additional $300 million
- The proceeds from this offering will be used for general corporate purposes, including the acquisition of Bitcoin, reaffirming Strategy’s long-term commitment to its Bitcoin strategy
Strategy CEO Michael Saylor went on Twitter on February 18 to let investors know that the company did not gather funds from class A common stock under its at-the-market equity offering program—also meaning that the company did not raise any funds to purchase Bitcoin.
The firm has been almost consistently buying Bitcoin on a weekly basis since November 11. The fact that Strategy did not buy any BTC this week may have raised a few eyebrows among the investment community.
However, that does not mean that Michael Saylor’s Strategy is ready to give up its plan to raise tens of billions in BTC over the next couple of years.
In fact, the company announced today a plan to raise $2 billion in convertible senior notes due 2030. These notes will not bear regular interest, and the principal amount will stay the same. The notes are set to mature on March 1, 2030, unless they are repurchased, redeemed, or converted earlier.
The offering is intended to be a private placement to qualified institutional buyers in accordance with Rule 144A under the Securities Act. Strategy expects to use the proceeds from this offering for general corporate purposes, including the acquisition of Bitcoin and working capital.
Additionally, Strategy has granted initial purchasers an option to buy up to an additional $300 million in notes within five business days from the initial issuance. This move reaffirms the company’s commitment to its Bitcoin acquisition strategy, despite the market’s fluctuations and investor concerns.
The note makes it clear that the net proceeds gathered from this offering will be used for general corporate purposes, including buying more Bitcoin.
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