Strategy MicroStrategy again issued 2 billion interest-free convertible bonds, continue to increase BTC

Just issued the annual report warning that in the future, there may be a large amount of BTC unrealized gains and losses tax to be levied, the Strategy (, originally named MicroStrategy ), announced the conditions for the issuance of 2 billion convertible bonds, and will use its net income of 1.99 to 2.28 billion USD for general corporate purposes, including the acquisition of Bitcoin and as operating funds.

(MicroStrategy('s annual report warns that in 2024, a significant impairment will be recognized due to BTC, and in 2025, a large amount of taxes may be payable under the new regime)

Strategy announces the issuance of 2 billion interest-free convertible bonds

Strategy announced that it will conduct a private placement issuance of convertible preferred notes with a total principal amount of 2 billion US dollars due in 2030 to eligible institutional buyers. The issuance conditions are as follows:

Expiration date: March 1, 2030

Coupon Rate: 0%

Conversion price: $433.43 ) premium of about 35%(

Puttable Rights: Under certain conditions, investors can sell the note at par value )100( after 3/1/2028.

Forced redemption 'Soft Call': Under certain conditions, the Strategy can redeem early at the original price )100( after 3/5/2027.

)MicroStrategy issuance of convertible bonds, low interest rates and high stock conversion prices, what is the operating principle?(

The Strategy allows investors to purchase an additional $300 million of notes within five business days from the initial issuance date, which is expected to be completed on February 21, 2025. The net proceeds are expected to be around $1.99 billion. If the initial purchasers fully exercise their option to purchase additional notes, it will be approximately $2.28 billion. The Strategy intends to use the net proceeds from this issuance for general corporate purposes, including acquisition of Bitcoin and as working capital.

The probability of future issuance convertible bonds has greatly increased

According to its '21/21 Plan,' the Strategy aims to increase its capital by $42 billion over the next three years starting from October 30, 2024, including $21 billion in equities and $21 billion in fixed income securities. This plan will further support its acquisitionBTC as part of its reserve asset strategy.

As of the last financial report, MicroStrategy has issued 16.7 billion shares, 3 billion convertible bonds, and nearly 600 million preferred shares. MicroStrategy classifies them as fixed-income ).

If this issuance of convertible bonds is added, the Strategy will have 5 billion convertible bonds, and the remaining issuance quota will be left:

issuance new shares: 43 billion

Convertible Bond: 140 billion

Preferred shares: 14 billion

(Strategy leads the trend, a detailed explanation of the BTC reserve strategy company investment guide)

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