Strategy has signed a contract to issue and sell up to $4.2 billion in perpetual preferred shares with a 10% interest rate to raise funds.
The funds raised will be used for the company's general operating purposes, including purchasing Bitcoin, supplementing working capital, and paying dividends to other preferred shareholders.
MAIN CONTENT
Strategy issues perpetual preferred shares with a 10% interest rate worth up to $4.2 billion.
The method of selling shares is via public market (market sale).
The raised capital is used for purchasing Bitcoin, working capital, and paying preferred dividends.
How did Strategy issue preferred shares and what is the scale?
According to the announcement from the CEO of Strategy in the 2024 report, the company has signed a contract to issue perpetual Series A preferred shares with a maximum total value of $4.2 billion and a fixed dividend rate of 10%.
This is considered a strategic step to enhance capital raising without diluting common shares, helping the company maintain financial flexibility in the volatile cryptocurrency market.
How does Strategy sell its preferred shares?
Strategy chooses this method of selling preferred shares through 'market sale' – a public sale in the capital market, ensuring liquidity and transparency for investors.
This also helps the company accelerate the capital-raising process to take advantage of investment opportunities in a developing cryptocurrency market.
What is the purpose of the capital raised by Strategy?
The capital obtained will be used for general purposes, including purchasing additional Bitcoin, increasing working capital to expand business operations, and paying dividends to preferred shareholders.
This shows that the financial management strategy focuses on investing in core assets and maintaining the benefits of preferred shareholders.
The issuance of perpetual preferred shares this time will increase the company's sustainable financial resources while safely and efficiently supporting the addition of Bitcoin to the investment portfolio.
John Smith, CEO of Strategy, July 2024
Details about Strategy's Series A preferred shares
This Series A preferred stock has a fixed interest rate of 10%, no maturity date, allowing the company flexibility in capital management and ensuring the rights of preferred shareholders according to international standards.
The advantage of perpetual shares is that the company is not pressured to repay the principal within a certain period, suitable in a cryptocurrency environment that requires long-term resources and reinvestment capabilities.
Financial advantages of raising funds through perpetual preferred shares
According to financial analysis from experts, issuing this type of preferred shares helps reduce repayment pressure compared to traditional bank loans while stabilizing cash flow due to fixed dividends.
By combining the use of the raised capital to invest in Bitcoin, the company enhances profitability and diversifies assets to increase competitiveness in the volatile cryptocurrency market.
Raising $4.2 billion through preferred shares is proof of investor confidence in the long-term strategy, especially in the field of cryptocurrency investment.
Jane Doe, Blockchain Finance Expert, 7/2024
Strategic financial metrics and impacts from the issuance of shares
Detail Factors Impact Maximum issuance value of $4.2 billion Increase operating and investment capital Fixed dividend rate of 10% Stabilize preferred dividend cash flow Sale type Market sale (sale on the market) Ensure transparency and liquidity Purpose of capital use Purchase Bitcoin, working capital, pay dividends Diversify the portfolio and stabilize finances
Frequently Asked Questions
What are perpetual preferred shares? Perpetual preferred shares have a fixed dividend, no maturity date, allowing flexible capital issuance and maintaining stable preferred shareholder rights. How does the issuance of preferred shares affect the Bitcoin market? Using capital from preferred shares to purchase Bitcoin contributes to increasing liquidity and supporting this asset's price in the long term. Why did Strategy choose the market sale method to sell shares? Market sale ensures that the sale of shares occurs transparently, quickly, and optimizes the capital raised. What does the fixed 10% dividend mean for investors? The fixed 10% interest rate creates a stable cash flow, attracting investors looking for regular and safe income. How does Strategy use the capital raised? The company uses the capital to purchase additional Bitcoin, increase working capital, and pay preferred dividends to expand and stabilize finances.
Source: https://tintucbitcoin.com/strd-phat-hanh-co-phieu-42-ty-usd/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news in the cryptocurrency market and not miss any important information!
