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Strategy Set for Another $2B in Bitcoin Buying Power as it Prices Latest Capital Raise
The convertible note offering is expected to close tomorrow.
Feb 20, 2025, 1:24 p.m.
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What to know:
Strategy (MSTR) Thursday morning announced the pricing on $2 billion of 0% convertible five-year senior notes. The deal is expected to close on Friday.
The initial conversion rate is 2.3072 shares of MSTR for $1,000 principal amount of notes, representing an initial conversion price of $433.43 per share, according to the press release. MSTR shares are higher by 1.5% premarket to $323.53.
Proceeds are expected to be $1.99 billion, or potentially $2.28 billion should the underwriters exercise their greenshoe option.
Strategy currently holds 478,740 bitcoin (BTC) worth about $46.5 billion at BTC's current price just above $97,000.
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BlackRock's digital assets head: Leverage-driven volatility threatens bitcoin’s narrative
Rampant speculation on crypto derivatives platforms is fueling volatility and risking bitcoin’s image as a stable hedge, says BlackRock’s digital assets chief.
What to know:
- BlackRock digital-assets chief Robert Mitchnick warned that heavy use of leverage in bitcoin derivatives is undermining the cryptocurrency’s appeal as a stable institutional portfolio hedge.
- Mitchnick said bitcoin’s fundamentals as a scarce, decentralized monetary asset remain strong, but its trading increasingly resembles a "levered NASDAQ," raising the bar for conservative investors to adopt it.
- He argued that exchange-traded funds like BlackRock’s iShares Bitcoin ETF are not the main source of volatility, pointing instead to perpetual futures platforms.
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