Strategy Raises $2B for Bitcoin

CRYPTO
Strategy Raises $2B for Bitcoin

Strategy (MSTR), formerly MicroStrategy, is raising another $2 billion through 0% convertible notes, with an additional $300 million available via underwriter greenshoe. The funds will primarily be used to buy more bitcoin (BTC), reinforcing the company’s aggressive strategy of accumulating the asset.

Led by Executive Chairman Michael Saylor, Strategy is the largest corporate bitcoin holder, with 478,740 BTC worth over $45 billion. The news slightly boosted bitcoin’s price, pushing it up 1% to $95,000 after an earlier dip.

The company follows this strategy because Saylor believes bitcoin is the ultimate store of value, superior to cash and traditional assets. By leveraging low-interest debt to acquire BTC, Strategy aims to benefit from long-term appreciation and hedge against inflation. This approach has significantly increased the firm’s market value, positioning it as a hybrid between a tech company and a bitcoin investment vehicle.

FINANCE
HSBC Announces $2B Share Buyback

HSBC announced a $2 billion share buyback after reporting a 6.5% rise in annual pre-tax profit, supported by the sale of its Canadian banking business. The bank’s profit before tax came in at $32.31 billion, slightly below LSEG’s $32.63 billion estimate but above HSBC’s internal consensus of $31.67 billion.

For the full year, revenue dropped to $65.85 billion from $66.1 billion in 2023. Fourth-quarter pre-tax profit nearly doubled to $2.3 billion, recovering from a $3 billion impairment charge last year, though revenue declined 11%. HSBC expects to complete the buyback by Q1 2025 and plans to cut annual costs by $1.5 billion by 2026.

Following CEO Georges Elhedery’s appointment, HSBC reorganized into four business units, aiming for efficiency. The restructuring is expected to save $300 million in 2025. Hong Kong-listed shares fell 0.29% post-earnings, and HSBC recently laid off 40 investment bankers.

FINANCE
Kim Kardashian Partners with Nike

Nike and Kim Kardashian’s Skims are launching NikeSkims, a new fitness brand focused on women’s activewear. The collaboration will feature an extensive line of apparel, footwear, and accessories designed for both style and performance.

“This partnership delivers meticulously designed products that sculpt and perform for every body,” said Kardashian, co-founder of Skims. The first NikeSkims collection will debut this spring, with global expansion planned for 2026.

Nike’s renewed focus on women athletes aligns with its broader turnaround strategy under CEO Elliott Hill. Earlier this month, the brand aired a high-profile Super Bowl ad featuring top female athletes like Caitlin Clark, Sha’Carri Richardson, and Jordan Chiles.

The partnership was first reported by Puck News. Following the announcement, Nike shares rose 2.2% in premarket trading Tuesday but remain down 3.5% for the year. NikeSkims aims to redefine women’s activewear by blending innovation, performance, and body-contouring design.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.