Get ready for some big moves in the crypto world! Strategy, the brainchild of Bitcoin enthusiast Michael Saylor, is looking to raise a jaw-dropping $21 billion through a preferred stock offering. And guess what? A big chunk of that cash is earmarked for buying more Bitcoin and keeping their business wheels turning.
In a fresh announcement, Strategy has inked a deal to sell up to $21 billion of their 8% Series A Perpetual Strike Preferred Stock. This news comes straight from the horse's mouth via the US Securities and Exchange Commission. These shares, with a teeny-tiny par value of $0.001, can be swapped for Strategy’s class A common stock. They're being sold through an at-the-market offering program, meaning they're playing it cool and selling as the market vibes right.
So, what's the game plan for all this dough? According to Strategy's press release, they're using it for good ol' corporate purposes. Think more Bitcoin and boosting their working capital. They’re not in a rush, though. The sale of these shares will happen gradually, with Strategy promising a “disciplined” approach based on market conditions.
The nitty-gritty details from their filing show that the preferred stock might hit the market through various compliant methods, including at-the-market offerings, negotiated transactions, and block trades. This grand offering is part of a prospectus supplement filed earlier this year, under a registration statement that’s been green-lit since January.
Already the top dog in Bitcoin ownership among corporations, Strategy’s looking to beef up their crypto wallet even further with this offering. Their love affair with Bitcoin is no secret; it's a key part of their long-term game plan.
In a recent twist, the company dropped the “Micro” from its name to better reflect its passion for Bitcoin and AI, marking a new era of tech-savvy transformation. This rebranding followed a record-smashing fourth quarter in 2024, where they added more Bitcoin to their stash than ever before.
As it stands, Strategy is sitting on a massive pile of 499,096 BTC, worth a cool $39.87 billion according to the latest from Bitcoin Treasuries. Despite this bold move, Strategy’s stock (MSTR) took a bit of a tumble, trading at around $252, which is down over 12% from its last close. But in the wild world of crypto, who knows what tomorrow will bring?
