Recently, Strategy (formerly known as MicroStrategy) officially submitted documents to the U.S. Securities and Exchange Commission, planning to issue up to $21 billion in 8% Series A perpetual preferred shares. This move has drawn market attention, as it not only involves large-scale fundraising but may also have far-reaching implications for Strategy's Bitcoin purchasing strategy.

According to official documents, these preferred shares have a par value of $100 per share, an annualized interest rate of 8%, and pay dividends quarterly, which can be in cash, common stock, or a combination of both. Additionally, the preferred shares can be converted into common stock at a 10:1 ratio, meaning that every 10 preferred shares can be converted into 1 common share.

This issuance of preferred shares will adopt a 'market issuance plan' model, meaning the company can directly sell preferred shares in the market, similar to the ATM issuance of common stock. This means that Strategy now has ATM financing channels for both common and preferred shares.

So, how is this issuance of preferred shares different from previous ones? Will this innovative financing method bring new variables to the Bitcoin market? This article will provide an in-depth analysis.

Evolution of Strategy's Financing Methods

Before analyzing Strategy's latest financing method, let's briefly review its past methods of purchasing Bitcoin.

In the early stages, Strategy, as a software company, used idle cash on its balance sheet to purchase Bitcoin. The first three investments in this stage bought 40,700 bitcoins.

As the company increased its investment in Bitcoin, they began to use convertible preferred bonds (convertible bonds) for financing. Convertible bonds allow investors to convert bonds into company stock under specific conditions, providing downside protection (the ability to recover principal and interest upon bond maturity) along with potential gains from rising stock prices. This method acquired 119,481 bitcoins.

In addition to convertible bonds, Strategy also issued preferred secured bonds, which are a type of secured debt instrument that carries lower risk than convertible bonds but has a more fixed return model. Using this model for financing, the company purchased 13,005 bitcoins.

With the rise of MSTR's stock price, starting in 2021, the company has increasingly adopted market price stock issuance (ATM) methods for financing. ATM is a financing method widely used in the United States that allows publicly traded companies to issue new shares at current market prices directly in the open market to raise funds.

On February 20 of this year, Strategy issued $2 billion in convertible preferred notes, which require a more complex and time-consuming review process than before. As a result, the market speculated that Strategy's pace of purchasing BTC would slow down.

However, the recent submission for review of $21 billion in perpetual preferred shares has reignited market expectations for Strategy to return to a 'buy, buy, buy' mode.#比特币生态