The Strategy (formerly known as MicroStrategy) has announced plans to raise $21 billion through Series A Preferred Stocks (STRK) to acquire more Bitcoin.
According to March 10th statementthe company had concluded a sales agreement to issue and sell shares in 8.00% Series A Permanent Strike Preferred Stock (ATM). The stock price is $0.001, totaling $21 billion.
Investors holding STRKs may exchange shares for Class A common stock, subject to certain conditions.
The strategy said sales under the ATM program will be implemented gradually taking into account factors such as trading volume and price fluctuations.
Understand STRK
STRK is a permanent preferred stock that provides additional liquidity to the strategy’s Bitcoin acquisition plan.
Unlike bonds with fixed maturity dates, permanent preferred stocks do not have a redemption period. Instead, STRK offers an annual dividend of 8% as long as the company is open.
Since introducing the financial product in January, the strategy has already raised more than $584 million through convertible preferred stock offerings.
The company also claims that STRK was the most liquid preferred strain in its best performance of the past decade.
Bitcoin purchase
Meanwhile, the company plans to use net revenue from its ATM programs for general corporate purposes, such as acquiring more Bitcoin.
The move is consistent with the ongoing approach of strategies to strengthen Bitcoin’s position through multiple financial mechanisms, including stock financing, debt issuance and operational cash flow.
On February 24, the company bought the latest Bitcoin, adding 20,356 BTC for around $2 billion. This brings total Bitcoin Holding to 499,096 btc, exceeding $47 billion.
Since launching the Bitcoin accumulation strategy under Michael Saylor’s leadership, the strategy has spent $33.1 billion with an average purchase price of $66,357 per BTC.
Despite the latest fundraising, strategic stocks are facing downward pressure. According to Google Finance data, MSTR is trading at $252.48 after a 12% drop the other day.
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