Top Banks Support Strategy’s Bitcoin Pursuit

Despite ongoing debates about the sustainability of MicroStrategy’s (now Strategy) Bitcoin treasury strategy, demand for the firm’s debt instruments is consistent as investors seek exposure to Bitcoin. Recently, at least four leading banks are set to underwrite the firm’s new convertible note offering to support further Bitcoin purchases.

A Packed Roster

On February 18, the firm announced its plan to raise $2 billion through senior convertible notes with a 0% interest rate for general corporate purposes and Bitcoin acquisitions.

> Strategy Announces Proposed Private Offering of $2.0B of Convertible Senior Notes. $MSTR
> — Strategy (@Strategy) February 18, 2025

Prominent banks such as Morgan Stanley, Barclays, Citigroup, and Goldman Sachs will manage this new sale, likely enhancing investor confidence in Strategy’s goals.

Lucrative Fees

The interest of these banks in Strategy’s capital-raising efforts stems from growing demand, as well as the attractive underwriting fees. Recently, Strategy’s perpetual preferred offering, Strike Preferred Stock (STRK), surpassed expectations, raising over $560 million, tripling its target.

With demand still rising, the price of STRK increased over 23% to about $98.60, making it the top-performing and most liquid perpetual security listed in the U.S. since 2022.

With underwriting fees hitting up to 2% of sale proceeds, Strategy’s $560 million offering translates into an $11.2 million fee pool for banks. The planned $2 billion offering could yield approximately $40 million in fees.

Michael Saylor Won?

Considering the lucrative fees and demand, more banks may become involved in facilitating Strategy’s capital-raising activities, which is seen by some as confirmation of the success of the firm’s Bitcoin strategy.

“The beginning of the financialization of Bitcoin is settled; Michael Saylor won,” asserted Andrew Parish, co-founder of Arch Public.

> Banks are falling all over themselves to finance the next $10-20B @MicroStrategy Bitcoin purchases.
> — Andrew (@AP_Abacus) February 8, 2025

Currently, Strategy holds 478,740 BTC valued at nearly $46 billion, with an intention to raise $42 billion to acquire more Bitcoin through 2027. This year, the firm has purchased 31,270 BTC for $3.17 billion.