Strategy Eyes Another $2B to Expand Bitcoin Holdings

Business intelligence firm Strategy (formerly MicroStrategy) is raising $2 billion through convertible debt to buy more Bitcoin, reinforcing its position as the largest corporate Bitcoin holder. The company’s 21/21 Plan aims to raise $42 billion over three years to fund further BTC acquisitions. Strategy’s aggressive Bitcoin strategy is led by Executive Chairman Michael Saylor, a vocal advocate for the cryptocurrency. While MSTR stock dipped slightly after the announcement, Bitcoin has seen record highs near $95,000 due to increased institutional interest. Despite the risks of volatility, Strategy’s commitment highlights a shift in corporate treasury management, with Bitcoin playing a growing role in mainstream finance.

Business intelligence firm Strategy, formerly known as MicroStrategy, is once again doubling down on Bitcoin. The company has announced plans to raise $2 billion through a convertible debt offering, aiming to significantly increase its Bitcoin reserves. Already the largest corporate holder of the cryptocurrency, Strategy’s move underscores its unwavering belief in Bitcoin as a long-term asset.

Raising Billions for Bitcoin

Strategy’s latest fundraising effort involves issuing 0% convertible senior notes due in 2030, exclusively available to qualified institutional investors. Additionally, initial buyers have the option to purchase up to $300 million more within the first five days of the offering.

According to the company, proceeds from the sale will be used to acquire more Bitcoin and cover general corporate expenses. The move is in line with Strategy’s "21/21 Plan," an ambitious strategy to raise $42 billion over three years—half through equity and half via fixed-income securities—to fund further Bitcoin acquisitions.

Growing Bitcoin Reserves

Since adopting Bitcoin as its primary treasury reserve asset in 2020, Strategy has aggressively accumulated the cryptocurrency.

Executive Chairman Michael Saylor, a vocal Bitcoin advocate, continues to champion the asset as a superior store of value. He has frequently referred to Bitcoin as “the apex property of humanity”, arguing it outperforms traditional assets like gold in the long run.

Market Reactions and Bitcoin's Performance

The market response to Strategy’s latest Bitcoin play has been mixed. On February 18, Strategy’s stock (MSTR) dipped slightly by just over 1%, though it remains up 372% over the past year.

Bitcoin itself has also seen record highs in recent months, institutional interest, positive regulatory developments, and corporate adoption have fueled this rally, making Bitcoin an increasingly attractive asset class.

The Bigger Picture: Corporate Bitcoin Adoption

Strategy’s unrelenting push into Bitcoin has reshaped corporate treasury strategies, showing that publicly traded companies can treat Bitcoin as a viable reserve asset. The company now holds nearly 2.5% of Bitcoin’s total supply, reinforcing its influence in the crypto market.

However, the company’s Bitcoin-heavy strategy is not without risks. Cryptocurrency markets are notoriously volatile, and heavy reliance on Bitcoin could expose Strategy to financial instability in the event of a downturn.

Despite this, Strategy’s unwavering commitment to Bitcoin highlights a transformative shift in corporate finance. As more institutions explore Bitcoin as a treasury asset, Strategy remains a frontrunner in driving mainstream adoption of digital assets.