Strategy, formerly known as MicroStrategy, plans to raise additional capital for Bitcoin purchases despite current market volatility and macroeconomic uncertainty.
Capital raising plan and Bitcoin purchases
Strategy plans to increase its capital by $21 billion through the issuance of class A shares. The funds will be used to support its investment program, including possible new Bitcoin acquisitions.
Analysis of current investment strategy
Currently, Strategy owns approximately 499,096 Bitcoins valued at over $41 billion. The company has spent $33.1 billion acquiring this cryptocurrency at an average price of $66,357 per Bitcoin, mainly using capital raised from equity sales.
Stock innovations and potential risks
STRK shares, as perpetual preferred stocks, provide a new level of flexibility for Strategy in its Bitcoin purchase plans. These stocks are distinguished by having no set maturity date and providing a fixed dividend payout. Additionally, STRK investors can exchange their shares for class A common shares, although this process requires meeting certain conditions. Strategy also retains the option to buy back shares if their value falls 25% below their initial offering price.
Strategy continues to build its Bitcoin investments using innovative financial tools like STRK. However, risks remain due to market volatility and economic uncertainty.
