Strategy, formerly known as MicroStrategy, has announced plans to boost preferred equity sales to raise around $500 million for further Bitcoin investments.
Strategy's Increase in Preferred Equity Sales
Strategy is offering shares of its new 'Stretch' type stock worth $5 million with a 9% dividend rate. These shares are priced between $90 and $95, representing a 10% discount from the original price of $100.
Boosting Bitcoin Holdings and Company Financials
Following the completion of its ongoing offerings, Strategy reported a 47% increase in its shares, generating $119 billion in revenue. This enables the company to boost its Bitcoin holdings to 607,770 BTC, accounting for 3.05% of the total issued supply.
The Role of New Preferred Stock in Company Strategy
The new 'Stretch' preferred stock features an adjustable dividend rate, which can be reviewed monthly. The rate can be increased, and in case of a decrease, a specific algorithm is employed that caps the annual reduction at 0.25%.
With growing Bitcoin holdings and new initiatives, Strategy continues to solidify its position as a leading corporate Bitcoin holder, which may have significant implications for the company's future.
