Strategy plans to issue $2 billion in convertible senior notes to increase its Bitcoin holdings

Odaily Planet Daily News Bitcoin finance company Strategy (formerly MicroStrategy) said on Tuesday that it plans to issue $2 billion in convertible senior notes with an interest rate of 0%. Strategy intends to use the proceeds from the offering for general corporate purposes, including the acquisition of Bitcoin. Unless repurchased, redeemed or converted earlier, the notes will mature on March 1, 2030. Strategy will settle the conversion in cash, Class A common stock, or both. Strategy also plans to grant initial purchasers the option to purchase up to $300 million in additional notes within five business days of the issuance. (The Block) Previous news, Strategy (formerly MicroStrategy) submitted a 10-K annual report on February 18, showing that the company recorded a net loss in fiscal 2024 due to $1.79 billion in digital asset impairment losses. It also warned that if the market value of Bitcoin drops sharply, it may not be able to return to profitability in future periods and may affect its ability to fulfill its financial obligations. According to the Inflation Reduction Act, the unrealized fair value gains of its Bitcoin holdings may be subject to a 15% corporate alternative minimum tax (CAMT).