Strategy Upsizes Stock Offering to Fuel Bitcoin Accumulation Push
Led by the outspoken Bitcoin advocate Michael Saylor, the company has announced the pricing of a new stock offering designed to raise additional funds for this purpose.
In a recent update on the social media platform X, Saylor shared details of the companys Strife Perpetual Preferred Stock (STRF) offering, which has been significantly upsized from an initial $500 million to a substantial $722.5 million. The offering includes 8.5 million shares priced at $85 each, and it will yield fixed dividends at a rate of 10% per year. The structure of the offering is similar to bonds, providing investors with predictable dividends while also granting them ownership in the company.
The funds generated from the sale of these preferred shares will be allocated primarily towards general corporate purposes, with a significant portion earmarked for the continued acquisition of Bitcoin. This move is in line with Strategys long-standing strategy of accumulating more of the leading cryptocurrency by market capitalization. Currently, the firm holds a massive 499,226 BTC, valued at around $41.9 billion, according to Bitcoin Treasuries.
This new offering comes on the heels of another significant financial maneuver in February, when Strategy raised $2 billion through the issuance of 0% convertible senior notes. These notes are a form of debt that can be converted into shares at a predetermined rate, providing the firm with additional capital to further its Bitcoin accumulation efforts. With these continued investments, Strategy is reinforcing its position as one of the largest corporate holders of Bitcoin.
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Text source: Coindoo
