Strategy company, formerly known as MicroStrategy, announced a new pricing strategy for preferred shares aimed at strengthening its cryptocurrency portfolio.
New Preferred Stock Announcement
According to the company’s statement, 8,500,000 shares of preferred stock offering a fixed 10% dividend were priced at $85.00 per share. The target amount was increased from a previous $500 million proposal to $722.5 million. The proceeds will be utilized for general corporate purposes, working capital needs, and particularly Bitcoin purchases.
BTC Portfolio and Financial Strategies
Previously, Strategy had supported its Bitcoin purchasing activities by issuing approximately $2 billion worth of zero-interest convertible shares under a private offering. The current value of the 499,226 Bitcoins held in the company’s portfolio stands at $41.9 billion. The stated share price implies the proceeds will be used to meet Bitcoin purchase and working capital needs.
Conclusion
These steps reflect Strategy's commitment to strengthening its digital asset portfolio and achieving corporate objectives. The company plans to use the revenue generated to support both general corporate activities and sustain its Bitcoin-based purchasing strategy.
The latest moves by Strategy signal its commitment to strengthening its position in the digital asset market despite the shifting financial landscape.
