Strategy Plans $21B Stock Sale for Bitcoin Purchase, Bitcoin Down 17%

Strategy executive chairman Michael Saylor has announced a bold initiative to enhance the company’s substantial Bitcoin (BTC) holdings. In a recent post on the social media platform X, Saylor revealed that Strategy, formerly known as MicroStrategy, plans to sell $21 billion in preferred STRK stock to acquire more Bitcoin.

The announcement comes at a time of market volatility, with Bitcoin prices having decreased by 17% over the past month, coinciding with a significant stock market correction. According to the announcement, the proceeds from the stock sale will be used for general corporate purposes, including the purchase of additional Bitcoin. Strategy is already the largest public corporate holder of Bitcoin, currently owning 499,096 BTC, valued at approximately $41.2 billion.

The stock sale is part of Strategy’s “21/21 plan,” which aims to raise capital through the issuance of 8% Series A Perpetual Strike Preferred Stock. This type of stock issuance allows Strategy to raise significant capital without committing to a repayment timeline, as these shares do not have a maturity date.

During his speech at the Conservative Political Action Conference (CPAC) this week, Saylor emphasized the importance of Bitcoin as digital property and a crucial tool for the US to dominate cyberspace in the future. He argued that Bitcoin presents a unique opportunity for the US to “own cyberspace” and become a creditor nation within a decade. Saylor also highlighted the strategic importance of the US acquiring a significant portion of the Bitcoin network to maintain its economic leadership in the digital age.

Saylor’s comments underscore his belief in Bitcoin’s potential to revolutionize the financial landscape and secure the US’s position as a global economic leader. By doubling down on Bitcoin during a market crash, Strategy demonstrates its confidence in the long-term value of the cryptocurrency and its commitment to leveraging digital assets for strategic advantage.