🤯MicroStrategy’s Billion-Dollar Bitcoin 🍀Bet: $21B STRK Stock Sale!

Oh boy, have I got a story for you! MicroStrategy, now going by the name “Strategy”, 🙃 is planning to raise a whopping $21 billion through its Class A Strike Preferred Stock, aka STRK. And guess what they’re planning to do with all that dough? You guessed it – buy more Bitcoin! 🎉 Despite the recent market downslide and macro uncertainty, Strategy is doubling down on its crypto bet.

According to a filing with the U.S. Securities and Exchange Commission and a company statement, Strategy will use the proceeds from the sale to fund general corporate operations, which could include more Bitcoin (BTC) buys. Offering STRK shares via an at-the-market sale adds to Strategy’s existing ATM equity program for the “21/21” roadmap, a plan to raise and invest $42 billion in BTC championed by executive chairman Michael Saylor. 🤑

Currently, Saylor’s company owns approximately 499,096 BTC valued at over $41 billion. Strategy has spent about $33.1 billion acquiring this massive BTC cache at an average price of $66,357—mostly funded by capital raised from equity sales. 📈

STRK, which is a perpetual preferred stock, adds a new layer of flexibility for Strategy as it continues to buy BTC through share sales. Perpetual preferred stocks aren’t bound to a maturity date or a fixed redemption period like bonds. Instead, vehicles like STRK pay a predetermined dividend in perpetuity, 8% in Strategy’s case, while the issuer remains in business. STRK investors can also swap their holdings for class A common shares, although this process involves specific requirements and conditions. 🔄

Furthermore, Strategy can exercise a buyback option for the total unbought allocation if STRK’s value declines 25% below its initial value at issuance. TradingView data noted that STRK was down 2.1% at last week’s close. Strategy did not see new patronage for its class A common stock between March 3 and March 7, meaning the firm will likely not disclose a new BTC acquisition this week. 😅

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2025-03-10 17:12