Michael Saylors Strategy Prepping For More Bitcoin Buys After Upsizing Latest STRF Offering To $723 Million
Strategy, the American software intelligence company helmed by Michael Saylor, announced Friday that it had upped its recently announced Strife perpetual stock offering to $723 million, aiming to boost its Bitcoin stash, which is nearing 500,000 BTC.
Strategys Unrelenting Bitcoin Buys
According to Strategys Friday announcement, the company will offer 8,500,000 shares of its 10% Series A Perpetual Strife Preferred Stock at $85 per share. The company expects its sale of preferred stock to close on March 25.
Strategy initially hoped to raise just $500 million from this sale of its so-called preferred strife perpetual stock; however, an increase in demand saw it expand the offering to $722.5 million.
Obviously, the Tysons Corner, Virginia-based firm, said it intends to use $711.2 million in net proceeds to buy more of the worlds largest crypto by market cap.
Strategy currently owns 499,226 BTC (worth well over $41 billion), so its imminent fresh round of buys should push its stockpile well above the 500,000 mark. For perspective, Strategy now holds nearly 2.4% of Bitcoins total 21 million supply.
Available only to institutional investors, Strategys Strife will pay quarterly dividends starting on June 30. Unlike Strategys so-called STRK, another form of perpetual preferred product, the new offerings dividend is payable only in cash.
However, according to Strifes terms, the company is allowed to delay dividend payments. Strategy said in the statement that unpaid dividends will accumulate and compound at an increasing rate of up to 18% per annum.
Strategy retains redemption rights for all shares if the outstanding amount falls below 25% of the total shares issued initially, or in case of certain tax events. However, in case of a fundamental change, holders will have the right to require the company to repurchase their shares at the indicated amount.
Saylors Vision
The Strife offering is a key component of Strategys ambitious 21/21 plan, which targets a capital raise of a whopping $42 billion in equity offerings and fixed-income securities to fund its multibillion-dollar BTC buying spree aggressively.
Known as one of Bitcoins biggest proponents, Michael Saylor has stressed Strategys commitment to HODLing its BTC stack for the long haul.
Speaking at Future Proof Citywide in Miami earlier this week, he noted Bitcoins recent downturn. Changing rate cut expectations, President Trumps tariffs, and economic concerns have resulted in a macro, risk-off zone, Saylor opined.
When that flips, I think Bitcoin will rip forward with a vengeance, the BTC bull added.
Strategy remains the worlds largest corporate Bitcoin holder, notching unrealized profits of about $8 billion on its BTC investments despite the Bitcoin price drop. Buying BTC is a no-brainer for Saylor. He believes the asset will hit $13 million by 2045 and deems $3 million a bear case.
Text source: ZyCrypto
