Saylor’s Strategy bond sale drives Bitcoin higher as price flirts with $100,000 – BitRss

Strategy continued its Bitcoin buying spree Thursday, announcing it would offer $2 billion in bonds to finance the purchase of the cryptocurrency.

Bitcoin inched up on the news, topping $98,200 — its highest price in the preceding week.

The Bitcoin move bucked a slump in riskier assets including stocks, while gold soared to a record and oil climbed on geopolitical jitters.

Strategy, formerly known as MicroStrategy, said Thursday it would offer $2 billion in convertible bonds due in 2030. In other words, it would take out a five-year loan that can be repaid in company equity if the stock hits a certain price, in this case, $433.43.

Strategy’s stock has quadrupled over the past year, with institutional investors piling in to get exposure to Bitcoin.

Strategy has been around for almost 40 years. The company’s 1,637 employees develop software for large companies like hotel chain Hilton and furniture retailer Crate & Barrel. But its revenue has slumped for three consecutive years, hitting a 10-year low of $463 million in 2024.

Since 2020, it has amassed an enormous amount of Bitcoin, which CEO Michael Saylor has described in reverential terms.

Strategy now refers to itself as “the world’s first and largest Bitcoin Treasury Company,” and unveiled a new, orange logo featuring the Bitcoin symbol as part of its rebrand earlier this month.

Institutional investors wary of buying Bitcoin directly can’t get enough Strategy stock.

In a sign of that demand, Strategy won’t pay an interest on the bonds announced Thursday. In other words, the company believes investors will lend it $2 billion for free.

Strategy’s stock held steady during intraday trading, at $323.4.

The company previously announced plans to raise $2 billion from sales of preferred stock as part of its ambitious “21/21” proposal. The plan, a reference to Bitcoin’s capped issuance of 21 million tokens, revolves around Strategy’s plan to raise $21 billion from equity and $21 billion from fixed income instruments over the next three years, totaling $42 billion. With the funds they plan to – what else – “acquire more Bitcoin.”

Aleks Gilbert is DL News’ New York-based DeFi reporter. You can reach him at [email protected].