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CryptoIntelligence 2025-03-21 14:35:08

Strategy’s $700 Million Stock Offering Fuels Aggressive Bitcoin Push Despite BTC Price Drop

Michael Saylor’s Strategy is continuing its bold foray into the cryptocurrency world with a major financial move designed to ramp up its Bitcoin accumulation. On Friday, the firm revealed it expects to raise approximately $711 million in net proceeds from a newly launched preferred stock offering. An Expanded Offering Amid Surging Demand The offering, labeled as “Series A Perpetual Strife Preferred Stock” (STRF), has been expanded from an initial 5 million to 8.5 million shares due to overwhelming demand. Each share is priced at $85, with a cumulative fixed dividend rate of 10% annually, based on a stated amount of $100 per share. Several major financial institutions are involved in the offering. Morgan Stanley, Barclays Capital, Citigroup Global Markets, and Moelis & Company are acting as joint book-running managers. AmeriVet Securities, Bancroft Capital, BTIG, and The Benchmark Company are onboard as co-managers. Flexible Redemption Rights and Liquidity Provisions The stock comes with a $100 liquidation preference per share. This value is recalculated daily, factoring in market activity and other financial indicators. Strategy retains redemption rights for the shares, which can be exercised if the outstanding share count drops below 25% of the original issue or in certain tax-related scenarios. Additionally, holders can demand repurchase if a significant structural change affects the firm. The 21/21 Plan: Strategy’s Bold Bitcoin Vision This offering is a critical element in Strategy’s ambitious “21/21” plan, which aims to raise $42 billion—split evenly between equity and debt—over three years to aggressively expand its Bitcoin reserves. The plan was first introduced in Strategy’s Q3 2024 earnings report and is already halfway to its funding goal. Since October 2024, Strategy has steadily grown its Bitcoin portfolio, now holding an impressive 246,000 BTC. The Tysons, Virginia-based company has raised billions through convertible senior notes and similar financial instruments, and now holds nearly 2.4% of the total Bitcoin supply. This latest financial maneuver further cements Strategy’s position as one of the world’s largest corporate holders of Bitcoin and underscores its unwavering belief in the asset’s long-term value.

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