Strategy Raises $980 Million to Buy More Bitcoin

Strategy, the world's largest corporate holder of Bitcoin (BTC), has announced a significant stock offering aimed at raising funds to acquire more of the leading cryptocurrency. The company, formerly known as MicroStrategy, plans to offer 11.764 million shares of its 10% Series A Perpetual Stride Preferred Stock at $85.00 per share. This offering is expected to generate approximately $980 million, which will be used for general corporate purposes and to purchase additional Bitcoin.

The preferred stock offering is a strategic move by Strategy to raise capital without diluting the voting rights of its existing shareholders. Preferred stocks typically offer investors higher and more consistent returns, along with greater stability compared to common stocks. This financial maneuver aligns with Strategy's long-term strategy of accumulating more Bitcoin, a digital asset that the company views as a store of value.

Strategy, co-founded by Michael Saylor, currently holds 580,955 Bitcoin, valued at over $60.5 billion at the time of the announcement. This holding represents an average cost basis of $40,680 per token and constitutes about 2.7% of Bitcoin's total supply. Saylor, a prominent advocate for Bitcoin, has been vocal about his belief in the cryptocurrency's potential as a hedge against inflation and a superior store of value compared to traditional assets.

Last month, Saylor announced that Strategy had doubled its target for capital accumulation to purchase more Bitcoin, increasing it from $42 billion to $84 billion. This aggressive stance reflects the company's commitment to Bitcoin and its confidence in the cryptocurrency's long-term prospects. The recent stock offering is a clear indication of Strategy's continued efforts to expand its Bitcoin holdings, leveraging its financial resources to capitalize on the growing acceptance and adoption of digital assets.

The move by Strategy to raise funds through a preferred stock offering underscores the company's strategic approach to financial management and its unwavering focus on Bitcoin. By securing additional capital, Strategy aims to further solidify its position as the largest corporate holder of Bitcoin, reinforcing its belief in the cryptocurrency's potential to revolutionize the financial landscape.