TL;DR
Strategy will gradually sell up to $2.1 billion in preferred stock to finance new Bitcoin purchases.
The company holds 576,230 BTC at an average cost of $69,726, with its holdings now valued at over $64 billion.
The plan sets no minimum amount of stock to sell, allowing Strategy to adjust issuance based on market conditions.
Strategy announced a plan to sell up to $2.1 billion in preferred stock to acquire more Bitcoin. The company signed an agreement with TD Securities, Barclays Capital, and The Benchmark Company to manage the sale of these shares, which will be placed gradually based on market conditions.
The shares are part of the 10.00% Series A Perpetual Preferred Stock, listed on Nasdaq under the ticker symbol STRF. Each unit has a $100 liquidation value and offers a 10% cumulative annual dividend, subject to board approval. As of May 21, the market price for these shares stood at $100.65, just slightly above their base value. There are currently 8.5 million shares outstanding, and the new issuance will maintain the same contractual terms.
A $64 Billion Treasure
The announcement comes as Bitcoin reached a new all-time high earlier today, peaking at $111,861 before settling around $111,000. Since August 2020, Strategy has accumulated 576,230 BTC at an average price of $69,726 per unit. At current market prices, those holdings are valued at nearly $64 billion, about 59% above their original acquisition cost.
Bitcoin has become the company’s main asset, now accounting for more than half of its estimated $111.4 billion market capitalization. Strategy will allocate the proceeds from this sale to acquire additional BTC and cover general corporate expenses, following the same approach used in previous capital raises.
Strategy Will Not Hold Funds in Escrow
The offering does not set a minimum number of shares to be placed, nor does it require agents to meet any sales target. These agents will receive a commission of up to 2% on the gross proceeds. Dividend payments will remain subject to available funds and board approval. The company also clarified that it will not hold the proceeds in escrow, allowing it to use the funds as the stock sales are completed.
Strategy plans to keep increasing its Bitcoin exposure, taking advantage of favorable market momentum while maintaining flexibility in the timing of its stock issuances
