Strategy, darling, has announced a rather flamboyant scheme to flog up to $2.1 billion in Series A Perpetual Preferred Stock, promising a 10% annual dividend. One shudders to think! 😮
The sale, you see, will be doled out gradually via “at-the-market” offerings, ever so discreetly, under SEC Rule 415(a)(4). This, apparently, grants the company the flexibility to sell when the market is feeling particularly generous or, failing that, through some rather hush-hush block trades. Clever, aren’t they? 😉
The proceeds, or so they say, are destined for general corporate purposes, which might, just might, include even more Bitcoin (BTC) purchases. One can only assume this is considered frightfully sensible. This, naturally, reinforces Strategy’s long-standing treasury policy of turning perfectly good cash into BTC and positions them to increase their already record-setting hoard, currently over 214,000 BTC. Good heavens! 😲
Unlike those previous funding escapades involving convertible notes, this time Strategy is dabbling in equity-like capital. Preferred stock, you see, doesn’t dilute common shareholder voting power, but acts as a sort of hybrid, a cross between debt and equity, offering fixed dividends — a rather eye-watering 10% in this case. My word! 🧐
That yield, my dear, reflects both the current interest rate climate and the rather substantial risk investors perceive in backing a Bitcoin-heavy corporate strategy. One almost feels sorry for them, almost. 😒
Bitcoin as an investment vehicle
This marks the latest in a series of financial maneuvers by Executive Chairman Michael Saylor, who has, rather audaciously, turned Strategy into a de facto Bitcoin investment vehicle. One wonders what the shareholders think! 🤔
By issuing preferred equity rather than traditional debt, the company avoids adding fixed repayment obligations — whilst still accessing billions in potential capital for more BTC accumulation. The sheer audacity! 🤩
The offering is also perpetual, meaning it has no maturity date. Investors receive dividends indefinitely, making it a rather long-term bet not just on Strategy, but on Bitcoin’s future. A gamble, perhaps? 😈
This fundraising, darling, signals Saylor’s unwavering commitment: if market conditions are just right, Strategy is prepared to buy even more Bitcoin. The man’s a machine! 🤑
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2025-05-22 16:08