Bitcoin News Today: Strategy Corp Ups Preferred Stock Offering to $2.5 Billion to Fund Bitcoin Purchases Now Holds 3% of Total Supply

Strategy Corp, led by Michael Saylor, has expanded its Stretch (STRC) preferred stock offering to $2.5 billion, a significant increase from the initial $500 million, to fund further Bitcoin acquisitions. The firm now holds 607,770 BTC, representing nearly 2.9% of Bitcoin’s total supply, reinforcing its position as a major player in the crypto treasury market [1]. The new shares are priced at $90 each, a 10% discount from the original $100 price, aiming to attract a broader range of investors. With net proceeds expected to reach approximately $2.474 billion, the firm is poised to capitalize on Bitcoin’s long-term value proposition despite current market volatility [1].

The preferred stock offerings include multiple structures—STRC, STRK, STRD, and STRF—designed to cater to diverse investor risk profiles. Stretch (STRC) shares, for instance, offer a variable monthly dividend starting at 9%, combining income generation with potential capital appreciation. This approach allows Strategy to maintain a steady capital inflow while aligning investor interests with its Bitcoin purchasing strategy [1]. The firm’s aggressive accumulation of Bitcoin, including $472 million in mid-July and $740 million in subsequent purchases, underscores its confidence in Bitcoin as a store of value and inflation hedge [1].

Strategy’s Bitcoin treasury is now valued at over $70 billion based on prevailing market prices, reflecting its dominance in the crypto treasury ecosystem. However, the firm’s shares (MSTR) have experienced a 2% decline following Bitcoin’s recent price drop to $115,655. This volatility highlights the correlation between MSTR’s share price and Bitcoin’s performance, a dynamic that has seen the stock reach an all-time high market capitalization last week before retreating to $406.49 [1].

The company’s strategy aligns with a broader trend of corporate crypto treasury accumulation. At least 159 publicly traded firms now maintain Bitcoin reserves, with some diversifying into Ethereum and Solana. This institutional shift is reshaping asset allocation practices, introducing new liquidity dynamics to traditional markets [1]. Strategy’s model of using preferred stock to fund Bitcoin purchases exemplifies a novel capital-raising mechanism, offering structured income opportunities while reinforcing its market leadership. As more firms adopt similar strategies, the institutionalization of cryptocurrency holdings may stabilize markets and accelerate mainstream adoption [1].

The upsized Stretch offering reflects a calculated approach to scaling Bitcoin acquisitions while managing investor expectations. By leveraging preferred stock structures, Strategy balances capital generation with risk management, positioning itself to navigate both market upturns and downturns. The firm’s ability to maintain its Bitcoin treasury near 3% of total supply demonstrates its resilience and strategic foresight in a rapidly evolving financial landscape [1].

Source: [1] [Michael Saylor’s Strategy Increases Preferred Stock Offering to Fund Potential Bitcoin Purchases] [https://en.coinotag.com/michael-saylors-strategy-increases-preferred-stock-offering-to-fund-potential-bitcoin-purchases/]