After Bitcoin reached a new historical peak, Strategy (formerly MicroStrategy) continues to demonstrate strong confidence in this cryptocurrency by announcing it will sell up to 10% of its STRF preferred shares, worth up to $2.1 billion, to continue purchasing more Bitcoin.
Sell Perpetual Preferred Shares to Increase Bitcoin Holdings
On Thursday, Strategy announced it would sell up to 10% of its STRF (Series A Perpetual Strife Preferred Shares), equivalent to $2.1 billion. The goal of this issuance is to use the proceeds to expand its Bitcoin portfolio and support the company's business operations.
The company stated that this stock sale will take place in the form of an 'at-the-market offering', meaning that distributing agents can sell shares in various ways, depending on market conditions.
Bitcoin Holdings Reach Record Levels
Not long ago, Strategy spent $764.9 million to acquire an additional 7,390 BTC at an average price of $103,498 each. Currently, the company holds a total of 576,230 BTC, equivalent to 2.74% of the total global Bitcoin supply. This amount of Bitcoin was purchased at a total cost of nearly $40 billion, but at the current market price of about $64 billion, indicating that Strategy has an unrealized gain of up to $24 billion.
Bitcoin Price Rises Strongly Due to Buying Pressure from Strategy
This announcement is made when Bitcoin is trading at $111,400, just slightly below the all-time high of $111,800 set on Wednesday night. The strong increase in Bitcoin over the past month – from $74,500 – is largely due to buying pressure from Strategy and other financial institutions that are learning to hold Bitcoin as a reserve asset.
This strong investment from Strategy not only creates a FOMO wave in the market but also becomes an inspiration for companies and even governments to consider accumulating Bitcoin in their reserves.
In summary: With the $2.1 billion stock sale, Strategy not only reinforces its position as the largest Bitcoin holder in the world but also reaffirms its absolute confidence in the long-term potential of this cryptocurrency in the global financial system.