Strategy, previously known as MicroStrategy, has announced plans to sell up to $2.1 billion in preferred stock to fund further Bitcoin purchases.
Planned Stock Sale
The company has announced intentions to sell up to $2.1 billion worth of preferred stock under a sales agreement with TD Securities, Barclays Capital, and The Benchmark Company.
Terms of the Offered Shares
The offered shares are part of the 10% Series A Perpetual Stock listed on Nasdaq under the ticker symbol 'STRF.' Each share has a liquidation preference of $100 and pays a cumulative annual dividend of 10%, if declared.
Bitcoin Acquisition Strategy
Currently, Strategy holds 576,230 Bitcoin accrued since August 2020 at an average cost of $69,726 per Bitcoin. The funds raised will be allocated to general corporate purposes and additional Bitcoin acquisitions.
The stock sale program will enable Strategy to continue its investment strategy in Bitcoin, which constitutes a significant portion of its market cap of $111.4 billion.
