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Strategy (MSTR) Drops 15% Amid $21B Preferred Stock Offering

Coin WorldTuesday, Mar 11, 2025 12:37 am ET
1min read

Michael Saylor, co-founder and chairman of Strategy, has unveiled an ambitious plan to raise up to $21 billion through the issuance of preferred stock. This move is part of a broader strategy to acquire more Bitcoin (BTC) and bolster the company's holdings in the cryptocurrency market. The new offering will consist of 8% series A perpetual-strike preferred shares, which are convertible into class A common stock. The company plans to sell these shares through an “at the market offering” program, allowing for flexibility in timing and pricing. This approach builds on a previous successful effort in January, when Strategy raised $563 million by issuing preferred shares priced at $80 each, which were offered at a discount to their market value.

Preferred stocks are unique hybrid securities that combine features of both equity and debt, offering investors a fixed dividend while providing a claim on company assets. The favorable terms of the January deal reportedly attracted significant investor interest, contributing to a strong performance of the newly issued shares. Since late October, Strategy has been actively acquiring Bitcoin, and the latest capital raise is part of a broader strategy to secure $42 billion over the next few years through various securities offerings. This includes a focus on selling fixed-income securities while managing common stock sales to fund additional BTC purchases. Currently, the firm holds approximately 499,096 Bitcoin, valued at around $42 billion.

Despite this purchase plan, Strategy reported that it did not purchase any Bitcoin between March 3 and March 9, according to a filing with the US Securities and Exchange Commission. This pause comes amid a fluctuating cryptocurrency market. The preferred stock market has seen varied performance; while the shares climbed 18% from their initial pricing, they faced a decline of over 6% in a recent trading session as the supply increased. Despite this fluctuation, the preferred shares have outperformed common stock and Bitcoin over the same period, suggesting a robust demand from investors.

As seen in the daily chart, shares of Strategy (MSTR) experienced a drop of around 15% to $238 on Monday, reflecting broader market trends that have seen the company’s stock down approximately 10% this year. In contrast, shares have surged over 2,200% since Saylor began investing in Bitcoin as an inflation hedge in 2020, while Bitcoin itself has risen over 600%.

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James manson
03/11

Investing in Bitcoin is essential as it offers a unique opportunity for financial growth and hedging against inflation in today’s digital economy. However, navigating the crypto market can be complex, which is why it’s crucial to work with a seasoned professional. I highly recommend contacting Darcie , a skilled and experienced trader, for expert guidance. Connect with her on telegram 👉@DarcieFx 👈 or WhatsApp 👉 +16202580684 👈 to maximize your investment potential and make informed trading decisions.  

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dritu_
03/12
@James manson 👍
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AIONisMINE
03/11
$MSTR if bitcoin goes back to 92k which it probably will this is where you should put your money
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ImplementEither7716
03/11
@AIONisMINE Where do you see resistance?
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threefold_law
03/11
$MSTR am I getting this right? This company has Bitcoin worth half its market cap, but the stock price acts like it's holding Bitcoin at $160K each. Bulls are totally delusional.
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dantheman2108
03/11
@threefold_law Totally, MSTR's stock price is detached from reality.
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