Disclaimer: The analyst who wrote this piece owns shares of Strategy (MSTR).
Strategy (MSTR), formerly known as MicroStrategy, has recently claimed the title of the largest issuer of U.S. convertible bonds for 2025. According to their latest post on X, they have significantly impacted the convertible market, stating, “Strategy is the largest convertible bond issuer again in 2025. Year to date, we represent 30% of the U.S. convertible market, powered by Bitcoin.” This bold assertion underscores the company’s strategic positioning within a rapidly evolving financial landscape.
As of now, Strategy has issued a remarkable $2 billion in convertible bonds. For context, the total U.S. convertible debt market reaches approximately $280 billion, as highlighted in a recent post by btc_overflow. Such figures illustrate the weight of Strategy’s contributions relative to the broader market and further indicate their expansive growth strategy.
In their communications, Strategy revealed the existence of six convertible debt offerings, with a total notional value of $8.2 billion and an average weighted maturity of 5.1 years, alongside a coupon rate of a mere 0.421%. These figures characterize the company’s fiscal prudence and long-term outlook amidst market volatility.
On the stock performance front, Strategy’s shares have proven even more volatile than the price of Bitcoin (BTC). Following a low point on February 28, their stock has rebounded approximately 30%, yet it previously experienced a significant decline of about 58% from its peak. This fluctuation reflects the intrinsic link between cryptocurrency performance and the company’s stock valuation.
Since the implementation of its Bitcoin treasury strategy in August 2020, Strategy has faced eight downturns exceeding 30%, with the most recent being notably the fifth largest decline. This showcases the challenges of navigating cryptocurrency markets while maintaining a robust investment strategy.
Looking ahead, Strategy remains focused on achieving potential inclusion in the S&P 500. This prospect hinges on Bitcoin closing above $96,000 by the end of Q1, which would bolster their eligibility for this prestigious index. As they continue to innovate and adapt within this volatile sector, all eyes will be on Strategy’s next moves.
