Strategy Raises $711.2 Million for Bitcoin Investments
Strategy, formerly MicroStrategy, has successfully raised $711.2 million through a preferred stock offering. The funds will primarily go towards buying more Bitcoin.The company sold 8.5 million shares of its 10.00% Series A Perpetual Strife Preferred Stock at $85 each. The deal is set too close on March 25, pending regulatory approval.
Initially, the offering was increased due to strong investor demand.
Strategy plans to use the net proceeds for general corporate purposes, including Bitcoin acquisitions and working capital. The preferred shares come with a 10% annual dividend, paid quarterly. If a dividend payment is missed, the rate will increase, starting at 11% and rising by 1% each quarter, up to 18% per year. The company can redeem the shares if fewer than 25% remain or if tax-related events occur. Holders can demand repurchase if there’s a change in control.
This is Strategy’s second major capital raise in recent weeks. On March 17, it bought 130 BTC for $10.7 million from earlier proceeds. As 2020, Strategy has been accumulating Bitcoin as part of its treasury strategy. The firm also develops AI-powered enterprise analytics tools.
