MicroStrategy plans to further issuance 2 billion US dollars of corporate bonds to add BTC, but the risk of corporate taxation is increasing.

MicroStrategy continues to deepen its BTC investment strategy, planning to raise funds for further BTC purchases through the private sale issuance of $2 billion in 0% convertible senior notes. However, market fluctuations and tax costs may still affect its long-term financial stability. (Background: The Trump family's World Liberty established a token reserve 'Macro Strategy', covering mainstream assets such as BTC and Ethereum) (Background: MicroStrategy rebranded as 'Strategy' to strengthen its BTC-centric positioning. Will consecutive quarterly losses affect the pace of increasing the position in BTC?) The US-listed company, MicroStrategy, announced its plan to raise $2 billion through a private sale issuance of 0% convertible senior notes, with the funds to be used to purchase more BTC and as operating capital to strengthen the company's asset allocation. According to an official announcement, the company plans to issue $2 billion in convertible senior notes, with a maturity date of March 1, 2030, and issuance only targeting eligible institutional investors. The face Intrerest Rate of this bond is 0%, and the final issuance size will depend on market conditions and other relevant factors. MicroStrategy stated that the raised funds will be used for general corporate purposes, including continuous BTC purchases and as operating capital. The fluctuation in BTC prices and corporate taxes may pose financial risks. In the 10-K annual report submitted on February 18, it was disclosed that the net loss for the 2024 fiscal year was recorded due to a $1.79 billion encryption asset impairment. The company emphasized that the drastic fluctuation in BTC prices may affect profit performance and even weaken its ability to fulfill financial obligations. However, MicroStrategy also pointed out that starting from January 1, 2025, the company will apply the newly revised fair value accounting standards from the Financial Accounting Standards Board (FASB), whereby the value of BTC holdings will be immediately reflected in the financial statements as per market price changes. Another point to follow is the 'Inflation Reduction Act', which may bring additional tax pressure. According to the act, unrealized fair value gains may be subject to a 15% minimum alternative tax for enterprises (CAMT). If the policy is not amended or tax exemptions are not provided, MicroStrategy may face a significant cash tax burden from 2026 onwards, further affecting financial flexibility. MicroStrategy did not sell any class A common stock in the past week, nor did it increase its BTC holdings. As of February 9, 2025, MicroStrategy holds a total of 478,740 BTC, with a total purchase cost of approximately $31.1 billion and an average purchase price of about $65,033 per bitcoin. Saylor remains bullish on the long-term value of BTC and continues to tilt the enterprise's asset allocation towards BTC. Last week, @Strategy did not sell any shares of class A common stock under its at-the-market equity offering program, and did not purchase any bitcoin. As of 2/17/2025, we hodl 478,740 $BTC acquired for ~$31.1 billion at ~$65,033 per bitcoin. $MSTR — Michael Saylor (@saylor) February 18, 2025 Related reports: The Trump family's World Liberty established a token reserve 'Macro Strategy', covering mainstream assets such as BTC and Ethereum. MicroStrategy rebranded as 'Strategy' to strengthen its BTC-centric positioning. Will consecutive quarterly losses affect the pace of increasing the position in BTC? MicroStrategy may be forced to sell BTC? The Wall Street Journal: MicroStrategy's unrealized gains on BTC may result in billions of dollars in taxes. 'MicroStrategy plans to further issuance of $2 billion in corporate bonds to increase BTC holdings, but the risks of corporate taxes are increasing' This article was first published on BlockTempo, the most influential blockchain news media in the dynamic area.