Michael Saylor announced the sale of $21B in STRK stock to fund Bitcoin purchases and corporate operations for Strategy.
Strategy's Capital Raising Plans
Michael Saylor, the driving force behind the strategic changes at Strategy, announced the sale of preferred STRK stock worth $21 billion. The funds will be directed towards purchasing Bitcoin and supporting corporate operations of the company, formerly known as MicroStrategy. This announcement was made in a post on March 10.
Bitcoin Plan
As of early March 2025, Strategy possessed 499,096 Bitcoins, valued at $40 billion, controlling 2.3% of the total supply. Despite a threefold reduction in unrealized profits due to Bitcoin's price drop in Q1 2025, Strategy remains optimistic for the long term. Peter Schiff questioned the company's ability to raise the necessary amount, whereas Jesse Myers from OnRamp Bitcoin suggested that issuing STRK shares could effectively channel funds from the bond market.
Price Performance
MSTR shares fell by 56% to the $240 level, which is seen across most U.S. equities. During the same period, Bitcoin also dropped by about 30%, which analysts note as a standard pullback for the cryptocurrency during bull runs. Bitcoin traded below $80K, but held above that level ahead of significant U.S. economic data. It remains unclear if Bitcoin will reverse its Q1 losses to aid MSTR.
Strategy, with its plans to sell shares and buy Bitcoin, continues to be in the spotlight, assessing potential risks and opportunities amid changing market conditions.
