Strategy Raises $711.2 Million to Strengthen its Position in Bitcoin
Strategy, well-known for its extremely bullish stance on Bitcoin, has just raised $711.2 million through the issuance of a new series of preferred shares. Named ‘Series A Perpetual Strife Preferred Stock,’ this fundraising significantly surpasses the company’s initial target of $500 million. The shares were sold at $85 each, with a total of 8.5 million shares placed.
An Clear Objective: Acquiring Even More Bitcoin
This fresh financial influx will primarily be dedicated to acquiring additional bitcoins. Strategy currently holds over 499,200 BTC, and this operation could push its stash beyond the symbolic threshold of 500,000 units. Such an accumulation would firmly place the company in a league of its own, consolidating its position as one of the world’s largest institutional holders of Bitcoin.
Attractive Conditions to Seduce Investors
This new financial product differs from Strategy’s previous issued securities. Unlike the initial STRK series, this new version offers an annual coupon rate of 10%, up from the previous 8%, without the possibility of conversion into common shares. This deliberate strategy aims to attract investors seeking high fixed returns while avoiding any dilution of capital.
This bold financial approach illustrates Strategy’s willingness to continue using capital markets as a lever to increase its exposure to Bitcoin, without having to sell shares of its portfolio or tap into its reserves.
Attentive yet Cautious Markets
Despite this impressive raise, Strategy’s stock (MSTR) is slightly down, trading below $300 before market opening. Meanwhile, the price of Bitcoin remains stable, just below $84,000, signaling that the market has already anticipated this buying spree without considering it an immediate catalyst.
This apparent calm should not overshadow the strategic significance of this operation: Strategy strengthens its position by anticipating a new bullish phase for Bitcoin while consolidating its trademark – a near-religious confidence in the long-term value of the digital asset.
