MicroStrategy Announces $1.05B Notes Redemption amid Reports of Potential Tax Upheaval

Company expands authorized Class A shares to 10.3 billion, reflecting strong institutional demand and market confidence in Bitcoin strategy.

Recent acquisition of 11k BTC brings total holdings to 461k, backed by Capital Group’s $2.2 trillion management portfolio.

Stock performance shows 650% yearly gain with 1.69% BTC yield, positioning company for continued growth under new administration.

(NASDAQ: MSTR), a leading supporter of the Bitcoin network, revealed on Friday a full redemption notice to its outstanding 0 percent convertible senior notes due 2027.

The company that note holders have until February 20, 2025, to participate in the redemption which is equal to about $1.05 billion, in addition to the accrued interest.

“In the event that any holder delivers a conversion notice as provided in the indenture related to the Notes, MicroStrategy has elected to satisfy its conversion obligation with respect to each $1,000 principal amount of Notes by delivering solely shares of its class A common stock, together with cash in lieu of any fractional shares,” MicroStrategy noted.

“In the event that any holder delivers a conversion notice as provided in the indenture related to the Notes, MicroStrategy has elected to satisfy its conversion obligation with respect to each $1,000 principal amount of Notes by delivering solely shares of its class A common stock, together with cash in lieu of any fractional shares,” MicroStrategy noted.

Market Impact of MicroStrategy’s Notice of Redemption

Following the announcement, MSTR shares dropped 0.69 percent in the past 24 hours to trade at about $371 at the time of this writing. The $93.12 billion valued company will, however, not experience major volatility due to its robust balance sheet and significant support from its shareholders.

As , MicroStrategy acquired 11k in the week preceding the 2nd inauguration of Donald Trump, thus adding its BTC trove to about 461k. With the unwavering support from Capital Group, which currently prides itself in more than $2.2 trillion in assets under management, MicroStrategy is well positioned to grow its valuation.

Furthermore, MSTR shares rallied more than 650 percent in the past year, and the company recently reported a BTC Yield of 1.69 percent YTD in 2025.

Due to its impressive stock market performance, MicroStrategy has attracted more investors willing to buy its heavily diluted shares. Earlier this week, the company’s shareholder approved a proposal amendment to increase its Class A common stock from 330 million to around 10.3 billion.

The move was a direct indication of the rising demand for its stock market from institutional investors and even global central banks.

Bigger Picture

MicroStrategy has been a strong proponent of Bitcoin strategy for all companies as insurance for future generations. The company’s success story in the past two years has convinced dozens of other companies, whereby around 3.01 million .

Some of the notable companies that hold Bitcoins as MicroStrategy include MARA Holdings, Riot Platforms, Tesla Inc., Metaplanet Inc., Semler Scientific, and Canaan Inc., among others.

In the long haul, MicroStrategy is likely to continue with its Bitcoin accumulation strategy, especially under the Donald Trump administration. Already, President Trump’s administration has made several moves related to the adoption of crypto assets in a responsible way.