Strategy, the company formerly known as MicroStrategy, is once again doubling down on its Bitcoin ambitions.
The firm has launched a new capital-raising initiative that could push its Bitcoin reserves past the 600,000 mark, reinforcing its dominance as the largest corporate holder of the digital asset.
The company revealed plans to offer shares of its 10.00% Series A Perpetual Preferred Stock through an at-the-market (ATM) program, potentially generating up to $4.2 billion. These shares, priced with a nominal value of $0.001, represent a major funding mechanism to fuel Strategy’s ongoing accumulation of Bitcoin.
According to the filing, the proceeds will be directed toward multiple purposes, including corporate operations, working capital, and most importantly, additional Bitcoin acquisitions. A portion of the funds may also support dividend payments to current holders of the company’s preferred stock.
This announcement arrives shortly after Strategy paused its weekly BTC purchases following 12 straight weeks of acquisitions. Despite the pause, the company reported $14 billion in unrealized gains on its Bitcoin investments. As of now, Strategy owns 597,325 BTC, purchased at a total cost of $42.4 billion, translating to an average price of $70,982 per coin.
By issuing preferred shares under the STRD ticker, Strategy is positioning itself to potentially cross the symbolic 600,000 BTC threshold. However, the company emphasized that the sale of these shares would be carried out cautiously over time, taking market conditions and share performance into account.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/strategy-unveils-4-2-billion-new-capital-plan-to-expand-bitcoin-holdings/