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Strategy, formerly known as MicroStrategy, has filed with the U.S. Securities and Exchange Commission (SEC) to raise $2.1 billion by offering 10.00% Series A Perpetual Preferred Stock. Although the sale will occur over an extended period, the timing of share issuances will depend on market conditions and current pricing opportunities.
The company plans to utilize the funds for various operational tasks, including business growth, cost management, and purchasing more Bitcoin. Unlike traditional debt instruments, STRF shares do not have an expiration date.
STRF's dividend rate is 10%, though the company is not responsible for repaying what investors put in. Fair Value allows Strategy to get capital without becoming more indebted. The move matches the company’s ongoing plan to depend on capital markets for cryptocurrency activities.
Over this period, from May 12 to May 18, Strategy purchased 7,390 bitcoins for $764.9 million. The company spent an average of $103,498 on each coin it bought. MicroStrategy raised the cash for this investment using class A common stock (MSTR) and a preferred stock called STRK. MicroStrategy is committed to buying more Bitcoin, even as Bitcoin’s price fluctuates.
The recent buy adds another 5,000 Bitcoin to the company, which now holds 576,230 coins. According to the firm’s statement, its overall purchase cost and expenses stood at $40.2 billion. Assuming today’s prices, the company’s Bitcoin investments total more than $64 billion and have earned an additional value of about $23.8 billion. This total amounts to just under 2.7% of total bitcoins and confirms that Strategy owns and controls more bitcoins than any other corporation.
Placing the STRF stock on the market is an essential step in Strategy’s “42/42” plan, designed to raise $84 billion by 2027. This plan follows the “21/21” plan, which has been implemented. To speed up Bitcoin acquisition and achieve long-term growth, the 42/42 plan combines selling equity and convertible notes.
Since the earlier equity programs have reached their cap, Strategy is now using this new STRF offering to support its plan for future funding. According to the company, this approach helps it participate in the digital asset market without sacrificing flexibility in its capital structure.
