Strategy Raises $2B for Bitcoin—Is It Taking on Too Much Debt?
Strategy causes waves again Positive Bitcoin Strategy. The company plans to raise $2 billion by privately selling convertible bonds that will mature in 2030. These bonds do not pay regular interest, but investors can choose to convert them into cash or strategic Class A shares. Through this move, the strategy aims to collect $1.9 billion, most of which will be used to buy more bitcoin and fund general businesses. Meanwhile, strategic stocks have soared 372% over the past year, performing best in the U.S. market.
Investors raise doubts about debt and Bitcoin holdings
Although the strategy’s plan seems to be bold, famous angel investor Jason Calacanis doesn’t believe it. he debate The company should be worth less than its Bitcoin holdings due to its rising debt. Another problem he highlighted is that shareholders do not actually control the company’s Bitcoin, which raises concerns about the security of assets. He also questioned whether the CEO Michael Sealer
Michael Sealer Michael J. Saylor is a passionate blockchain influencer and an outstanding leader. He is an entrepreneur and business executive who co-founded MicroStrategy, the chairman and CEO of the same MicroStrategy. He is a voice advocate for Bitcoin. He is proficient in enterprise software and has a rich understanding of knowledge in many fields, including analytics, data warehouses, leadership, SaaS, management, management, cloud computing, startups, professional services, enterprise architecture, mobile devices, etc. . Location: American Education: He graduated from MIT in 1987 and holds a dual major in aviation, science, technology and society. Experience: He has been the Executive Chairman and Founder of MicroStrategy since August 2022 – Gift – He is also the Chairman, CEO and Founder of MicroStrategy from October 1989 to August 2022, Skills: Buisness Intellighess and Data Warehousing net net Vorth: Saylor has a net worth of approximately $4.6 billion, according to Forbes. He also hosted 2.4 million shares of Microstrategy events: Bitcoin 2024 NASHVILLE and BTC PRAGUE (Protected by email) entrepreneurCrypto and blockchain expertsauthor Paying too much for Bitcoin and pointing out that every buying strategy is made, meaning others think their money is better spent elsewhere.
Can the strategy increase in stocks?
Despite his concerns about him, Caracanis did not bet on strategy. he admit The company’s stock can still climb in the near term. So far, the numbers have returned –Strategy stocks It rose 1.6% on Thursday, soaring 352% over the past year, far exceeding the S&P 500’s 23.5%. Despite a 30% decline from its November peak, it has increased by more than 700% in three years.
The $2 billion bond sale is just part of a bigger plan. The ultimate goal of the strategy is to raise up to $21 billion over the next three years through a variety of financial instruments, including stocks, bonds and preferred stocks. However, whether bond sales will depend on market conditions. If the situation doesn’t go as planned, the company may have to rethink its strategy.
- Please read also:
- SEC is “very interested” in cryptocurrency points, asking for industry insights before new guide
- ,,,,,
Do strategies take too much risk?
The company recently hosted a webinar to explain its plans Institutional Investorsbut the problem still exists. Can the strategy continue to buy Bitcoin at this rate without encountering liquidity issues? Will its debt become a problem in the long run?
Meanwhile, Calacanis continues to spark debate in the cryptocurrency world. He recently made headlines by calling XRP “centralized” security and added to his controversial list. As the strategy moves forward, only time will tell whether its heavy Bitcoin approach will pay off or become an expensive gamble.
Never miss the beats in the crypto world!
Stay ahead with Breaking News, expert analysis and real-time updates to the latest trends like Bitcoin, Altcoins, Defi, NFTS, and more.
FAQ
As of 2025, the strategic holdings of over 478,740 BTC, making it the largest corporate Bitcoin holder, whose purchases are funded by debt and equity.