In a major step reaffirming its unshakeable commitment to Bitcoin, Strategy Inc., previously MicroStrategy, has disclosed the acquisition of 20,356 additional bitcoins for about $1.99 billion. The purchase, made between February 18 and February 23, 2025, was funded through a zero-coupon convertible note offering. Through this acquisition, Strategy’s Bitcoin holdings now stand at 499,096 BTC, purchased at a total cost of $33.1 billion, averaging $66,357 per bitcoin.
Strategic Funding for Bitcoin Procurement
To support this enormous acquisition, Strategy was able to raise $2 billion in cash through the issuance of zero-coupon convertible senior notes that will mature in 2030. These senior unsecured notes carry no interest but are convertible into shares of Strategy’s Class A common stock at an initial conversion rate of 2.3072 shares for each $1,000 principal amount, equivalent to a conversion price of $433.43 per share—a 35% premium from the stock price of $321.05 as of the date of the offering.
The net proceeds of this offering were largely used to fund the recent Bitcoin acquisition, in accordance with the company’s strategic plan to raise $21 billion of equity and $21 billion of fixed-income securities over the next three years to further invest in Bitcoin.
Market Implications and Company Outlook
Strategy’s bold Bitcoin accumulation has made it the largest corporate owner of the cryptocurrency, now holding more than 2.3% of Bitcoin’s fully diluted supply, limited to around 21 million coins.
The approach has had a major impact on the company’s market capitalization and stock performance. Strategy’s shares fell by 5.7% to close at $282.76 as of February 24, 2025. This latest slip notwithstanding, the stock has skyrocketed over 250% within the last twelve months, evidencing the belief of investors in the strategy pursued by the firm in adopting the Bitcoin orientation.
The market value of Bitcoin too has been noteworthy, as the currency currently moves around $95,000, below the earlier high of $109,000 recorded within the last month. The interdependency of Strategy’s investment trends with Bitcoin price patterns remains an item of attention from investors and analysts in the marketplace.
Executive Insights and Future Plans
Strategy’s Executive Chairman and co-founder Michael Saylor continues to be a strong supporter of Bitcoin as a strategic asset. In his address at the 2025 Conservative Political Action Conference on February 20, Saylor underscored the need for the United States to have a strategic Bitcoin reserve in order to continue economic leadership.
He said, “There’s only space for one nation-state to acquire 20% of the network, and clearly, I believe it should be the United States.” Saylor’s vision is to make the U.S. a creditor nation in ten years and a leader in the digital economy for the next century. Forward, Strategy intends to continue its strategy of buying Bitcoin, using a mix of debt and equity issuances to finance such purchases.
The company’s strategy is predicated on a long-term conviction in the value proposition of Bitcoin and its place in the future financial world. Though some market watchers question the viability of pursuing such an aggressive investment strategy, Strategy’s management remains convinced in their path, with the aim of generating shareholder value through asset allocation.
