Strategy Inc, the company formerly known as MicroStrategy, isn’t slowing down on its Bitcoin buying spree. CEO Phong Le has laid out plans to raise capital through a combination of debt issuances and equity offerings, all in service of one goal: buying more Bitcoin.
Le has indicated the company aims to raise over $80 billion within a single year through these channels.
The capital-raising playbook
Strategy’s approach to funding its Bitcoin habit relies on two primary levers: debt and stock. On the debt side, the company uses instruments like convertible bonds. On the equity side, it issues new shares, often at strategic moments.
Strategy prioritizes raising capital when its shares are trading at a premium to their net asset value. When the stock price is higher than the value of the Bitcoin the company holds per share, that’s when they sell new stock to the market. The premium effectively means investors are paying extra for the Strategy wrapper around Bitcoin, and the company captures that spread to buy even more BTC.
