Strategy officially launched its fourth preferred stock 'Stretch' with an annual dividend yield of 9% to increase working capital and expand Bitcoin reserves.
The new preferred shares of Strategy have a par value of $100 per share and pay monthly dividends. On the same day, the company announced it had purchased an additional 6,200 Bitcoin, raising its total balance to over 607,700 Bitcoin.
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Strategy issued 5 million 'Stretch' preferred shares with a 9% annual dividend, paid monthly.
The 'Stretch' shares have a floating dividend rate, complementing previous preferred stock codes.
The company raised its total Bitcoin reserves to over 607,700 after purchasing an additional 6,220 for $739.8 million.
What are the highlights of Strategy's 'Stretch' preferred stock?
This is Strategy's fourth preferred stock, set with an expected annual dividend rate of 9%, with monthly dividend payments at a par value of $100 per share. According to Strategy's CFO, this product enables the company to flexibly raise capital for business operations and enhance Bitcoin investment.
'Stretch' shares have variable interest characteristics, compared to previous preferred stocks with fixed rates such as STRK (8%), STRF, and STRD (10%). This model expands the financial product portfolio to diversify the company's capital sources.
What are the details about the amount of Bitcoin that Strategy has recently purchased?
On July 22, Strategy announced it had purchased an additional 6,220 Bitcoin worth approximately $739.8 million, raising its total Bitcoin holdings to over 607,700. This information was disclosed by CEO Michael Saylor, who is known for his long-term investment strategy in Bitcoin.
The expansion of the Bitcoin reserve reflects the company's strategic commitment to digital assets and belief in the future of cryptocurrency.
Michael Saylor, CEO of Strategy, July 2024
This is one of the largest Bitcoin reserves held by a business organization aimed at enhancing asset value and affirming its leadership position in the cryptocurrency financial market.
What is Strategy's fundraising strategy and expansion plan?
Strategy is implementing the '42/42' plan to raise a total of $84 billion through the issuance of preferred stock and convertible bonds by 2027. The main goal is to increase financial resources to purchase additional Bitcoin, strengthening its position in the cryptocurrency sector.
This expansion plan not only helps strengthen the Bitcoin portfolio but also demonstrates our long-term vision in harnessing the new potential of digital assets.
Michael Saylor, CEO of Strategy, Q2 2024 financial report
The issuance of preferred shares with different dividend rates aims to meet the diverse needs of investors while ensuring the company's finances remain stable to expand its Bitcoin investment portfolio.
Comparing some preferred stock products of Strategy
Stock Code Annual Dividend Rate Type of Dividend Purpose of Capital STRK 8% Fixed Business expansion and Bitcoin investment STRF 10% Fixed Working capital increase STRD 10% Fixed Supporting Bitcoin purchase plan STRC (Stretch) 9% (floating) Floating Fundraising for operations and additional Bitcoin purchases
Frequently Asked Questions
How does Strategy's 'Stretch' preferred stock differ from previous codes?
STRC has a floating dividend rate, unlike fixed dividend stocks, allowing for flexible fundraising that aligns with market conditions.
How much Bitcoin did Strategy purchase in its most recent transaction?
The company purchased an additional 6,220 Bitcoin, valued at approximately $739.8 million, raising its total holdings to over 607,700.
What is the purpose of the capital raised from the new preferred stock issuance?
The investment strategy expands business operations and increases the amount of Bitcoin in the asset portfolio.
What is Strategy's '42/42' plan?
The plan to raise $84 billion by 2027 through preferred shares and convertible bonds to purchase Bitcoin.
Who leads and speaks about Strategy's investment strategy?
Michael Saylor, CEO, often speaks about the company's commitment to cryptocurrency assets and expanding Bitcoin reserves.
Source: https://tintucbitcoin.com/stretch-phat-hanh-co-phieu-uu-dai4/
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