Strategy, formerly known as MicroStrategy, announced plans on February 20, 2025, to raise $2 billion through convertible notes to enhance its Bitcoin holdings. The company aims to increase its total Bitcoin stash to 500,000 BTC, building on its current holdings of 478,740 BTC, valued at approximately $46.15 billion based on current market prices.
- Strategy plans to raise $2B in capital.
- Total Bitcoin holdings reach 478,740 BTC.
- Goal to acquire 500K BTC by March.
- MSTR stock down 16% from January highs.
- Year-to-date MSTR gains exceed Bitcoin's.
- MSTR remains a top-performing U.S. stock.
In 2025, Strategy made five bids for Bitcoin, acquiring over 30,000 BTC. The latest capital raise is intended to facilitate further purchases, with the goal of reaching 500,000 BTC before the end of February. As of now, market sentiment appears mixed, with predictions from Polymarket indicating a 53% chance of achieving this target. This figure had previously spiked to 80% following the announcement of the capital raise.
Despite the ambitious plans, the company’s stock, MSTR, has seen a decline of 16% since late January, trading at $333 at the time of reporting. In contrast, Bitcoin has also experienced a 12% drop from recent highs, trading around $96,000. Year-to-date, MSTR has logged an 11% gain, outperforming Bitcoin’s 1.9% increase. Over a year, MSTR is up 373%, significantly higher than Bitcoin’s 85% increase, demonstrating the stock’s strong correlation with Bitcoin prices.
Market analysts, including Felix Jauvin, suggest that the $2 billion capital raise could signify a local bottom for Bitcoin prices. While the future performance of MSTR remains uncertain, it has been one of the top-performing U.S. stocks, largely due to its Bitcoin acquisition strategy. Investors and analysts will be closely watching the developments as February progresses.
In summary, Strategy’s efforts to raise $2 billion aim to solidify its position in the Bitcoin market by increasing its holdings to 500,000 BTC. With mixed market sentiments and significant fluctuations in both Bitcoin and MSTR stock, the outcome of this strategy will be closely monitored by investors.
