Michael Saylor's company, formerly known as MicroStrategy, is adjusting the terms of its $2 billion convertible debt deal in order to attract investors. The conversion premium has been slashed to 35% from the original target of 40%-50% due to lower stock volatility. Hedge funds and institutional investors have been closely monitoring the deal, but with reduced stock volatility, aggressive trading strategies tied to the company's fluctuations are limited. Despite a 30% drop in the stock since November, the company remains up over 700% in the past three years due to its Bitcoin acquisition strategy. As of now, the company holds over 478,000 Bitcoins worth more than $45 billion and plans to continue accumulating through fixed-income securities and stock sales. The recent convertible debt offering is the company's first since raising $560 million through a preferred stock sale. Strategy reported a fourth consecutive quarterly loss, mainly due to a $1.01 billion impairment charge related to its Bitcoin holdings. However, they plan to adopt a new accounting rule in Q1 that will allow them to measure Bitcoin at fair market value, reducing the impact of future price drops. Despite the losses, Strategy purchased a record-breaking 218,887 Bitcoins in the last quarter alone, bringing its total holdings to 471,107 Bitcoins worth $46 billion. The company plans to prioritize fixed-income issuance in 2025 as part of its Bitcoin accumulation strategy.



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