On March 10, 2025, StrategyB (formerly MicroStrategy), a company known for its large-scale Bitcoin accumulation strategy, announced plans to issue up to 21 billion USD of 8.00% Series A perpetual preferred stock through an At-the-Market (ATM) Offering program. The entire amount raised is expected to be used to purchase more Bitcoin and serve the general purposes of the company. This is a bold move, affirming StrategyB's position as one of the leading organizations in integrating cryptocurrency into corporate financial strategy. Let's analyze this move in detail and its implications for the crypto market.
ATM Program: Flexible and Efficient
First, it is important to clearly understand what an ATM program is. An At-the-Market Offering is a method of issuing securities directly to the market, allowing StrategyB to sell new shares in parts based on the current market price, rather than issuing a large lot at a fixed price. This approach provides flexibility, helping the company to maximize advantageous stock price phases and minimize volatility risk. With a fixed interest rate of 8% on the Series A perpetual preferred stock, #StrategyB not only attracts investors seeking stable yields but also creates long-term capital to facilitate Bitcoin purchases.
Market Trends and the Role of Bitcoin
As of now (March 2025), the cryptocurrency market is witnessing significant fluctuations. Bitcoin, the largest coin, remains the focus of attention as the 'digital gold' in the context of a volatile global economy. StrategyB currently holds approximately 499,096 BTC, equivalent to over 2.3% of the total supply $BTC (21 million coins). The raising of an additional 21 billion USD to increase holdings reflects Michael Saylor's strong belief in Bitcoin's long-term potential – the company's leader. This is not just a financial move but also a strategic declaration: Bitcoin is not just a speculative asset but also a tool for preserving value in corporate investment portfolios.
Compared to the features of Binance, the leading cryptocurrency trading platform, it can be seen that StrategyB's strategy offers a different perspective. While Binance provides flexible trading capabilities and portfolio diversification for individual users, StrategyB focuses on accumulating Bitcoin as a long-term strategic asset. This could indirectly benefit Binance users, as the increased demand for Bitcoin from large institutions like StrategyB could drive the value of this coin higher, thus creating profit opportunities for investors on the platform.
Information Value Analysis: Anyone Can Understand
For newcomers to the crypto market, understanding the concept of 'perpetual preferred stock' or 'ATM Offering' can be quite complex. Simply put, perpetual preferred stock is like a loan that never matures that StrategyB issues to raise money, and they pay 8% interest annually to investors who own this stock. The ATM Offering is how they sell the stock gradually, like retail selling at a counter rather than a large wholesale sale. This money is then used to buy Bitcoin – a decentralized digital currency, independent of banks or governments, considered a 'safe asset' during inflation.
For experts, this move by StrategyB is a prime example of how companies leverage the capital market to optimize their crypto investment strategy. However, it also raises questions about sustainability: will the price of Bitcoin continue to rise to offset the cost of capital raising and maintain profits for shareholders?
Risks and Conclusion
Although the potential is clear, investing in Bitcoin – and indirectly through StrategyB – is not without risks. Bitcoin's price can be highly volatile, and if it drops significantly below the average that StrategyB purchased (around 66,423 USD/BTC), the company could face significant financial pressure. Additionally, over-reliance on a single asset also makes StrategyB vulnerable to stricter regulatory scrutiny in the future. This is why investing in crypto always requires careful consideration and is not suitable for everyone.
Risk Warning: Investing in cryptocurrencies, including Bitcoin, carries high risks due to price volatility, the risk of loss of capital, and the potential impact of external factors such as legal policies or fraud. Binance users or any investors should carefully assess their financial capacity and risk tolerance before participating.
In summary, the move to issue 21 billion USD of preferred stock by StrategyB is not just a financial step but also a strong signal about the growing role of Bitcoin in the corporate world. Could this be the turning point that brings Bitcoin closer to the mainstream financial sector? Time will tell.
