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Strategy Unveils Distinctive Financing Strategy for Bitcoin Purchases

Strategy Introduces Unique Financing Strategy for Bitcoin Purchases

Strategy, under the leadership of Michael Saylor, plans to issue 5 million Series A Perpetual Strife Preferred Stock to fund new Bitcoin purchases. Unlike previous stock offerings, this new class of shares provides investors with a fixed annual return of 10%, paid quarterly starting from June 30, 2025.

This unprecedented financing approach marks a first for Strategy, which had never utilized this type of funding before. Furthermore, if the company were to miss a dividend payment, the interest rate would gradually increase from 11% to a maximum of 18% until all missed payments are made.

An Enduring Stock with Specific Conditions

The Perpetual Strife Preferred Stock lives up to its name — it has no expiration date and can only be redeemed under specific circumstances. Strategy can buy back these shares if their circulation falls below 25% of the total issued, if their price plummets below a certain liquidation threshold, or in the event of a major Bitcoin-related incident.

This approach is unusual in the world of preferred shares, where investors typically expect a redemption or conversion into common shares. Strategy is therefore banking on an extremely flexible financing model, albeit an expensive one in the long run.

A New Announcement Following a Minimal Bitcoin Purchase

This issuance comes on the heels of Strategy’s smallest recorded Bitcoin purchase. On March 17, the company acquired 130 BTC for $10.7 million, at an average price of approximately $82,981 per BTC. This quantity is significantly lower than its usual purchases, with the previous smallest purchase being 169 BTC in August 2024.

Strategy Nears the 500,000 BTC Milestone

Despite these reduced purchases, Strategy remains the world’s largest institutional holder of Bitcoin. Since its initial investment in August 2020, the company has accumulated 499,226 BTC, costing a total of $33.1 billion.

With an average acquisition price of $66,360 per BTC, Strategy currently holds a substantial unrealized gain of several billion dollars, even after the recent market slowdown. At the current price, its Bitcoin reserves are worth approximately $41.1 billion.

If the company acquires an additional 774 BTC, it will reach the symbolic threshold of 500,000 BTC, representing 2.38% of the total Bitcoin supply.

Unwavering Ambition

Despite market uncertainties, Michael Saylor continues to increase his exposure to Bitcoin with ever-bold financing strategies. This new stock offering demonstrates his willingness to sacrifice long-term capital in order to strengthen Strategy’s position as the ultimate leader in institutional Bitcoin holdings.

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