Strategy Doubles Down on its 21/21 Plan, Seeks $2B in Convertible Notes Offering to Expand Bitcoin Stash

The largest corporate holder of Bitcoin, Strategy, is bent on keeping that title as more companies join the club.

The company announced on February 18 that it wants to raise $2 billion through zero-interest convertible notes in private offerings targeting institutional investors. It stated that proceeds from the offering will primarily fund additional Bitcoin purchases, with a portion allocated for working capital. This move aligns with its aggressive 21/21 Plan to accumulate $42 billion worth of Bitcoin by 2027.

Strategy has heavily relied on convertible debt offerings to finance its Bitcoin acquisitions without diluting shareholders. The latest offering includes an option for initial purchasers to acquire an additional $300 million in notes. The notes, maturing on March 1, 2030, can be converted into cash, stock, or a combination of both at the company’s discretion.

Unlike traditional bonds, these notes will not accrue interest or increase in value over time, keeping their principal amount fixed. Strategy retains the right to redeem them for cash starting March 5, 2027, but only if its stock price trades at least 130% above the conversion price for a specified period. Investors, meanwhile, can demand repurchase at the principal amount on March 1, 2028, or in the event of a major corporate change.

Despite its fourth consecutive quarterly loss, largely due to a $1.01 billion Bitcoin impairment charge, Strategy remains committed to expanding its holdings.

According to its latest earnings report, Strategy has already secured over $21 billion toward its Bitcoin goal since launching the 21/21 Plan in late 2024. The latest fundraising effort is expected to push its total Bitcoin holdings beyond the current 478,740 BTC.

This announcement follows the company’s rebranding from MicroStrategy to Strategy on February 5, which it claimed reflects its deepened focus on Bitcoin. The rebrand also introduced a new logo featuring a stylized “B”, which looks similar to the cryptocurrency’s depiction in popular media.

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