Strategy Raises $722M, Boosts Bitcoin Holdings by 130 BTC

Strategy, a company led by Michael Saylor, has successfully raised $722 million through the sale of its Series A Perpetual Strife Preferred Stock (STRF). This funding round was initially aimed at raising $500 million by issuing 8.5 million shares at $85 per share. However, due to heightened investor interest, the company managed to secure an additional $222 million, bringing the total to $722 million.

The proceeds from this funding round will be primarily used to expand the company's Bitcoin holdings. Strategy currently holds over 499,200 Bitcoins, valued at more than $33 billion. With the additional funds, the company aims to surpass 500,000 Bitcoins, further solidifying its position as a major player in the cryptocurrency market.

The Series A Perpetual Strife Preferred Stock offers an annual dividend rate of 10%, which is higher than the rates provided in the company's previous offerings. This stock does not include conversion features to common stock but provides cumulative dividends paid quarterly on a compounded basis. The higher dividend rate is intended to attract investors while allowing Strategy to continue building its Bitcoin position.

Michael Saylor's strategy of using corporate funds to acquire Bitcoin has been a cornerstone of Strategy's business model since 2020. The company has made multiple large Bitcoin purchases, with the latest addition of 130 BTC. This approach has positioned Strategy as a leader in corporate adoption of cryptocurrency as a reserve asset.

Under Saylor's leadership, Strategy has transitioned from offering convertible senior notes to issuing preferred stock to fund its Bitcoin purchases. This shift allows the company to accumulate Bitcoin without taking on the same level of debt associated with previous fundraising methods. The company plans to make new Bitcoin acquisitions at least twice a month, further cementing its influence in the cryptocurrency market.

As Strategy's Bitcoin holdings approach 500,000 tokens, the company's potential for future growth remains significant. The recent funding round and the company's ongoing commitment to Bitcoin underscore its strategic focus on cryptocurrency as a long-term investment.