Michael Saylor’s Strategy Unveils $21 Billion Stock Issuance For Bitcoin Investment
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Michael SealerCo-founder and chairman of strategy (formerly MicroStrategy) is stepping up efforts to acquire Bitcoin (BTC) by leveraging the capital markets, announcing plans to issue up to $21 billion in preferred shares.
Strategic plan to sell preferred shares mainly
according to For Bloomberg, the new product will include 8% of Series A Perpetual-Strike preferred stocks that can be converted into Class A common stock. The company plans to sell these shares through a “product on the market” program, allowing flexible timing and pricing.
This approach is based on a previous successful effort in January, when the strategy raised $563 million through the issuance of preferred stocks at a price of $80 per share, which is provided at its market value discount.
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Preferred stocks are unique hybrid securities that combine the characteristics of stocks and debts, providing investors with fixed dividends while providing claims for company assets. According to reports stock.
The strategy has been aggressively acquiring Bitcoin since late October, and the latest capital raising is part of a broader strategy of earning $42 billion in the coming years through various securities products.
This includes focusing on selling fixed income securities while managing common stock sales to fund additional BTC purchase. Currently, the company owns approximately 499,096 bitcoins, worth approximately US$42 billion.
Stocks fall 10% in Bitcoin crash
Despite the procurement plan, the strategy report says it did not buy any bitcoins between March 3 and March 9, according to the SEC filing.
In a volatile cryptocurrency market, this pause has come to the market leading cryptocurrency, BTCRecently, trading price for the day was down 4.5% for $79,000, with a monthly time range of about 18%.
The performance of the preferred stock market varies; while stocks have risen 18% from initial pricing, they face a drop of more than 6% in recent trade fairs as supply increases.
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Despite this volatility, preferred stocks outperformed common stocks and Bitcoin during the same period, indicating strong demand from investors.
As shown in the daily chart below, the share of the strategy (Mstr), also experienced a decline of about 15% to $238 on Monday, reflecting a broader market trend that has caused the company’s stock to fall by about 10% this year.
By comparison, stocks have soared more than 2,200% since Saylor began investing in Bitcoin as an inflation hedge in 2020, while Bitcoin itself has grown more than 600%.
The announcement of the strategic plan coincides with the latest developments in the U.S. government. President Donald Trump has signed an executive order to build a strategic U.S. Bitcoin reserve that will be funded through cryptocurrency confiscated in legal proceedings.
Featured images from dall-e, charts from tradingview.com
