Bitcoin News Today: Strategy Expands Preferred Stock Offering to $2 Billion, 9% Dividend Driven by Bitcoin Accumulation Strategy

Michael Saylor’s firm, Strategy, has significantly expanded its preferred stock offering to $2 billion, quadrupling the original target of $500 million. The move reflects robust investor demand and aligns with the company’s aggressive Bitcoin accumulation strategy. The Series A Perpetual Stretch shares (STRC), priced initially at $100, are expected to yield a 9% dividend, though Bloomberg sources indicate the final price may settle at $90 [1]. The offering, managed by TD Securities, Barclays, Morgan Stanley, and Moelis & Co, will fund further Bitcoin purchases, reinforcing Strategy’s position as the corporate entity with the largest Bitcoin treasury.

Strategy holds 607,770 Bitcoins, valued at approximately $43 billion, accumulated through a combination of equity and debt financing. The latest capital raise follows a $472.5 million at-the-market allocation used to acquire 4,225 BTC earlier this year. By leveraging preferred equity products like STRC, STRD, STRF, and STRK, the company has diversified its capital structure to sustain its Bitcoin acquisition program. This approach balances shareholder interests with long-term Bitcoin exposure, a strategy that has attracted institutional investors seeking alternative assets.

The STRC offering introduces a unique structure with cumulative dividends and a flexible dividend rate, distinguishing it from earlier preferred shares like STRD and STRK. While STRC ranks lower than Strife’s securities and convertible bonds, its terms cater to investors prioritizing steady income over liquidity. Bloomberg analysts note that the oversubscription of the offering underscores growing institutional confidence in Bitcoin as a store of value. The firm’s strategy of treating Bitcoin as a corporate treasury asset has set a precedent, prompting broader market adoption of cryptocurrencies for capital preservation.

Michael Saylor’s Bitcoin-focused strategy has redefined Strategy’s identity, shifting its focus from a software company to a blockchain-based financial entity. The firm’s continuous Bitcoin purchases, even amid price volatility, highlight its commitment to maintaining a dominant market position. By allocating proceeds from equity raises and debt to Bitcoin acquisitions, Strategy has effectively hedged against inflation while offering investors a tangible return through dividends. This dual approach has positioned the company as a key player in the institutional adoption of digital assets.

The expanded offering also signals a shift in corporate finance, where traditional capital structures are being adapted to accommodate cryptocurrency holdings. Strategy’s ability to secure substantial funding despite Bitcoin’s price fluctuations demonstrates investor tolerance for risk in pursuit of high-yield opportunities. The success of STRC may encourage other firms to explore similar financing mechanisms, further integrating cryptocurrencies into mainstream financial portfolios.

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[1] [title] [url]https://thebitjournal.com/strategy-bitcoin-treasury-stock-rises-to-2b/