Strategy raises another $2 billion with proceeds earmarked for bitcoin purchases

By Ciara LinnaneCrypto play formerly called MicroStrategy is offering zero-coupon convertible bonds in its latest move to boost its bitcoin holdingsMicroStrategy Inc. said Thursday it has priced a $2 billion offering of zero-coupon convertible bonds with the proceeds earmarked for its latest bitcoin purchase.The business-software company and cryptocurrency play, now doing business as Strategy (MSTR), said purchasers of the notes which mature in 2030 will have an option to buy up to an additional $300 million of bonds.The bonds offer no regular interest payments - a zero-coupon rate - but will offer holders the right to convert to equity at an initial price of $433.43 per share of Class A common stock. The stock closed Wednesday at $413.94.The company is expecting to net $1.9 billion from the offering, which will be used to buy bitcoin and for working capital.The move is part of the company's plan to issue $21 billion of equity and $21 billion in fixed-income instruments, including debt, convertible bonds and preferred stock, over the next three years.Strategy said about four years ago that it had adopted bitcoin as its primary treasury reserve asset.The announcement comes just two days after Strategy disclosed that as it was more than doubling its bitcoin holdings last year, it was also reducing its workforce. The company's 2024 annual report published Tuesday showed it had 1,534 employees as of Dec. 31, down by 400, or 20.7%, from the year before.The biggest cuts were in research and development, which lost 144 jobs, followed by consulting, which shed 124 jobs, and sales and marketing, which lost 95 jobs, the filing showed.Strategy filed its audited 2024 annual report Tuesday, about two weeks after it reported fourth-quarter results.Meanwhile, the company is now buying so much bitcoin that it has started to offer disclosures when it doesn't buy any.In 2024, the company's holdings of bitcoin more than doubled to 447,470, up from 189,150 at the end of 2023. It spent $22.1 billion to buy bitcoin in 2024, at an average price of about $85,447 per bitcoin.As of Feb. 17, the company said it owned 478,740 bitcoins, which were purchased for a total of $31.1 billion and an average price of $65,033 per bitcoin. At current prices, that holding would be worth about $46.6 billion.Bitcoin has been trading in a range of $93,000 to $100,000 in February to date, according to Dow Jones Market Data. The largest cryptocurrency has rallied since the November election on expectations President Trump would roll out pro-growth policies and crypto-friendly regulations.However, as Trump has threatened and enacted tariffs on a number of U.S. trading partners, investors have been concerned that inflation may heat up again, which could keep the Federal Reserve from cutting interest rates further this year.That has created some volatility and sluggishness in the past week as bitcoin has traded in tandem with risk assets.For more, read: Bitcoin's weakness may mean the U.S. stock-market rally isn't sustainable. Here's why.Strategy's stock was up 1.6% early Thursday and has gained 352% in the last 12 months, while the S&P 500 SPX has gained 23.5%.-Ciara LinnaneThis content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.