Unbelievable! How One Company Plans to Raise $2.1B with Bitcoin Magic! 💰✨

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  • Strategy to raise $2.1B via high-yield Bitcoin-focused preferred stock.
  • The company holds 576,230 BTC, representing 2.9% of the total supply.
  • Preferred stock offers 10% yield, avoiding common shareholder dilution.

In a move that can only be described as “bold” (or perhaps “slightly bonkers”), Strategy (formerly known as MicroStrategy, but let’s not dwell on the past) announced a plan to raise a staggering $2.1 billion on May 22, 2025. According to a prospectus supplement filed on the same day—because who doesn’t love a good prospectus?—the company will issue 10.00% Series A perpetual preferred stock. This delightful new stock is whimsically dubbed Perpetual Strife Preferred Stock and trades under the code STRF. Because why not add a touch of drama to finance? 🎭

Strategy Tops Public Bitcoin Holdings, Plans More Purchases

The purpose of this fundraising extravaganza is to support Strategy’s long-term Bitcoin plans. Specifically, the money raised will be used for general corporate needs, including buying more Bitcoin. Yes, you heard that right! This step shows the company’s unwavering commitment to using Bitcoin as a key part of its treasury strategy. As of now, Strategy holds more than 214,000 BTC, the largest amount owned by any public company. Talk about a digital hoarder! 🤑

Unlike previous funding methods that involved convertible notes (which sounds like something you’d find in a magician’s hat), this time, Strategy is using a different kind of financial tool. Preferred stock works as a delightful mix of debt and equity. It does not reduce the voting power of common shareholders, which is a relief because who wants to lose their say in the madness? However, it offers a fixed dividend—10% annually, to be precise. This high dividend reflects the risk involved in investing in a company so heavily tied to Bitcoin, especially in today’s interest rate climate, which is about as stable as a tightrope walker on a unicycle. 🎪

To help sell this preferred stock, Strategy has signed an agreement with three major financial firms: Barclays Capital, The Benchmark Company, and TD Securities. These firms will act as sales agents, carefully selling STRF shares depending on market conditions. This means the stock will only be issued when prices and demand are favorable. Because who wants to sell when the market is in a tailspin? Not Strategy, that’s for sure!

As of May 21, STRF shares were trading at $100.65 each on the Nasdaq exchange. While there is no minimum sales target (because who needs targets when you have dreams?), the goal is to raise $2.1 billion. From the total raised, 2% will go to the sales agents as commission. The rest will be used by Strategy for corporate purposes and potentially to buy more Bitcoin. Because, let’s face it, you can never have too much Bitcoin, right? 🤷‍♂️

Strategy Blends Finance and Crypto with Bold Bitcoin Treasury Model

This approach is not new for Strategy. The company typically uses funds raised by selling stock to purchase Bitcoin. Because of this, it currently holds 576,230 BTC. Currently, the supply includes approximately 19.86 million Bitcoin, and the amount sold is about 2.9% of that. It’s like a digital treasure hunt, but with more spreadsheets and fewer pirates.

It just so happens that Bitcoin recently hit a new milestone price, making this announcement very fitting. According to CoinMarketCap data, Bitcoin was trading at $111,880. Despite falling somewhat to $110,500, the current price has increased by 2% in the last 24 hours. Preferred stock helps the firm become officially financed at a level that pays investors and maintains full control for the common shareholders. Making this move could be very rewarding if Bitcoin’s prices stay high or go even higher. Fingers crossed! 🤞

Strategy’s big issuance of preferred stock highlights a new way companies are adopting Bitcoin. By creating equity-like products, the company hopes to satisfy investors as it develops its long-term digital asset aims. This way of doing things assures the shareholders and also proves that Strategy is leading in duplicating financial tools into the cryptocurrency world. If Bitcoin keeps rising, Strategy’s choice may introduce a new way for companies to use blockchain for treasury management. And who wouldn’t want to be part of that wild ride? 🚀

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2025-05-23 01:14