Strategy Plans $21 Billion Preferred Stock Offering to Acquire Bitcoin

Michael Saylor, co-founder of Strategy, plans to raise up to $21 billion through preferred stock sales to acquire Bitcoin (BTC).

Key Points on Preferred Stock Offering

• Offering includes 8% series A perpetual-strike preferred shares, convertible into class A common stock.
• The sale will utilize an "at the market offering" program for timing and pricing flexibility.
• Previously raised $563 million in January by selling preferred shares at a discount to market value.

Since late October, Strategy has focused on acquiring Bitcoin, aiming to secure $42 billion over the next few years for various securities offerings. The firm currently holds about 499,096 Bitcoin, valued around $42 billion.

Performance Amid Market Fluctuations

• No Bitcoin purchases reported from March 3 to March 9 amid market volatility.
• BTC trades at $79,000, down 4.5% daily and approximately 18% monthly.
• Preferred shares climbed 18% since initial pricing but fell over 6% recently as supply increased.
• Shares of Strategy dropped 15% to $238, reflecting broader market trends.

Since Saylor began investing in Bitcoin in 2020, Strategy's shares have surged over 2,200%, while Bitcoin has risen over 600%.

Additionally, President Trump signed an executive order to establish a strategic US Bitcoin reserve funded by forfeited cryptocurrencies.