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ZyCrypto 2025-06-06 19:30:46

Michael Saylor’s Strategy Takes A Shot At The Moon With Latest $1 Billion Bitcoin-Buying Tactic

Strategy, formerly known as MicroStrategy, has quadrupled its previously announced $250 million offering of perpetual Stride preferred stock, or STRD, as a new funding avenue for its Bitcoin investments. Strategy Upsizes Stock Offering To $1 Billion According to a June 6 press release , the Bitcoin treasury company will sell 11.76 million shares of its 10% Series A Perpetual Stride Preferred Stock (STRD), expecting to bring in an estimated $979.7 million after fees and expenses. STRD, which comes after Strategy’s other preferred offerings STRF and STRK, will be offered to the public at $85 per share, with the sale set to close on June 10. Strategy said the product will pay professional and institutional investors a 10% non-cumulative dividend. The company plans to use the almost $1 billion in net proceeds for “general corporate purposes, including the acquisition of Bitcoin and for working capital.” “It’s our high-yield credit instrument,” Strategy co-founder and Executive Chairman Michael Saylor said in a video that he posted on X earlier this week while referencing STRD. “Compared to STRK or STRF, it should be a higher-yielding preferred instrument.” During a presentation, Saylor shared a graphic indicating that STRD, which is listed on the Nasdaq, has “limited” sensitivity to the price of Bitcoin. In terms of senior status, STRD investors rank behind STRF and STRK’s holders, but they come before common shareholders. “STRD represents the fourth gear in our Bitcoin engine,” he continued. “The point of our engine is to generate BTC torque via surgical management of our [at-the-money offering programs].” Strategy now holds an eye-popping 580,955 BTC, worth over $60 billion, bought at an average price of $70,023 per coin. That’s the equivalent of almost 3% of Bitcoin’s total 21 million supply. At the apex crypto’s current price of $105,063, the $1 billion would allow the Bitcoin development company to purchase an additional 9,518 BTC, considerably more than its latest purchase of 705 Bitcoin for $75.1 million announced on June 2.

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