Strategy, led by Michael Saylor, quadruples its preferred stock fundraising to reach $2 billion, solely for the purpose of acquiring more Bitcoin.
Strategy increases its latest raise to $2 billion
Michael Saylor continues to push the accelerator. This Thursday, Bloomberg reveals that his company Strategy (formerly MicroStrategy) is quadrupling its latest fundraising through preferred stocks. The goal? Increasing from $500 million to $2 billion. One motto: buy Bitcoin. Again.
An enhanced raise in the midst of market consolidation
Announced earlier this week, the operation initially planned the issuance of 5 million preferred shares ‘STRC’ at $100 each, totaling $500 million. But demand exceeded expectations: the offering now rises to $2 billion, despite a revised lower price, the shares will likely be sold at $90 per unit, according to Bloomberg, at the lower end of the target range.
Why this enthusiasm? Because STRC, dubbed ‘stretch’ by Strategy, promises a regular 9% dividend, an enticing rate at a time when traditional returns disappoint.
607,000 bitcoins, and this is just the beginning
This new funding round has one goal: further strengthening the company’s BTC reserves. Strategy already holds 607,000 bitcoins, valued at over $72 billion according to BitcoinTreasuries.net. An unprecedented amount for a publicly traded company, far exceeding the reserves of states or central banks.
And despite Bitcoin currently trading between $115,000 and $120,000, MSTR stock has hardly reacted to the announcement. Investors seem accustomed to this aggressive accumulation strategy.
An overt leverage strategy
Michael Saylor does not hide it: he wants to transform his company into a true leveraged Bitcoin ETF. With STRC, he diversifies his tools: instead of diluting ordinary shares, he issues preferred shares, while offering a fixed return to investors.
This approach allows him to continue stacking BTC without greatly affecting the price of the regular stock, while attracting more institutional profiles drawn to the return.
Towards a standard for crypto-centric companies?
This hybrid fundraising model, halfway between stock and bond, could become a model for other companies exposed to digital assets. In an still volatile market, offering a stable structure with a 9% fixed return while betting on Bitcoin’s rise is a proposition that is starting to attract interest beyond the crypto world.
With this new raise, Saylor sends a clear message: the ‘Bitcoin standard’ strategy is more than ever underway, and he is willing to do whatever it takes to remain the biggest corporate hodler in the world.
