Raising capital, acquiring Bitcoin, repeating the cycle: Strategy, formerly MicroStrategy, is back at it again. This time, the company is set to issue up to $21 billion in 8.00% Series A Perpetual Preferred Stock, a move that fits into its ongoing accumulation game plan.
Equity financing, debt financing, operating cash flow - whatever it takes, the company continues to expand its Bitcoin holdings without slowing down.
Arman ShirinyanInstead of a one-time event, the offering will unfold gradually. Shares of the perpetual preferred stock - trading under the Nasdaq symbol “STRK” - will be sold over time through various market methods, depending on demand and conditions.
An 8.00% annual dividend, a $100 per share liquidation preference, and terms mirroring previous issuances: this money is mostly needed for Michael Saylor for only one goal - securing more cryptocurrency.
Another capital raise, another Bitcoin boost. This is not Strategy’s first time doing this. Back in February, the company pulled off a similar move, and now it is following through on its larger plan - $42 billion in funding over three years.
Alex DovbnyaDo the numbers tell the story? Right now, Strategy holds 499,096 BTC, worth around $41.71 billion. With an average cost per BTC at $66,423, its position remains strong, sitting on a 25.83% unrealized gain. Stock performance is keeping up at $274.11 per share, market cap at $74.7 billion. As things stand, Bitcoin makes up 55.8% of Strategy's market cap.
Dan Burgin
Vladislav Sopov