Strategy’s Latest Convertible Bond Spurs Talk of Crypto Fatigue

When Michael Saylor’s Strategy raised $2 billion in a convertible debt deal last week, it seemed like another triumph for firms rapidly selling equity-linked notes to fund cryptocurrency purchases. Behind the headline number, Strategy’s move to sweeten the deal’s terms sent a different signal: the market for crypto-related paper is nearing saturation.

Strategy and its copycats have raised billions of dollars over the past four months, accounting for an ever-larger share of the broader US pool. MARA Holdings Inc. has tapped investors for nearly $2 billion while Riot Platforms Inc. and Bitdeer Technologies Group have also been active. That’s on top of Strategy’s nearly $9 billion haul.