Strategy announced the issuance of $2 billion in convertible bonds to support future Bitcoin purchases

ChainCatcher news, according to The Block, Strategy Company (formerly MicroStrategy) plans to issue $2 billion zero-interest convertible senior bonds for general corporate purposes, including the acquisition of Bitcoin. These bonds will mature on March 1, 2030, and can be settled in cash, Class A common stock, or a combination of both. The company also granted initial purchasers an option to buy an additional $300 million in bonds.

Previously, Strategy issued a profit warning in its 10-K filing, primarily due to a $1.79 billion impairment loss on digital assets. The company warned that a significant decline in the market value of Bitcoin could affect its ability to repay debts and liquidity, forcing it to sell Bitcoin at unfavorable prices.

In 2024, Strategy acquired approximately 258,320 BTC and currently holds 478,740 BTC, valued at over $46 billion. The company stated that it may rely on equity or debt financing to meet its financial obligations in the future, with success depending on the market value of Bitcoin.