Strategy Announces Proposed Private Offering of $2.0B of Convertible Senior Notes
The strategy announced its intention to provide $2 billion of 0% convertible premium notes to private applications for qualified institutional buyers in Rule 144A of the Securities and Exchange Act of 1933, which should be made available in 2030. This move is part of a strategy’s ongoing effort to raise funds for its strategy. Initiatives, including acquisition of Bitcoin and general corporate purposes.
“The strategy also hopes to grant a purchase option among the initial buyers of the notes to settle within five working dates, including the date of the initial issuance of the notes, with up to $300 million in aggregate principal notes.” The company said .
These notes are unsecured, high-level strategic obligations and do not generate regular benefits. Notes will mature on March 1, 2030 unless repurchased, redeemed or converted in advance. Note holders may choose to convert the notes into cash, stocks of strategic Class A common stock, or a combination of both, depending on the election of the strategy.
The product depends on market conditions and there is no guarantee that it will go as planned. The company said it intends to use the net proceeds from the issuance primarily to Bitcoin acquisitions and working capital needs.
The convertible notes will be redeemed at any time after March 5, 2027, and in the event of a specific company change, the notes holders may need a strategy to repurchase their cash notes.
Strategy also held a video webinar on February 19, 2025 at 10:00 am ET, targeting qualified institutional buyers interested in more about the product. In order to participate in the webinar, potential investors must complete investor surveys on the strategic website.
