Michael Saylor’s Strategy Plans $21 Billion Preferred Stock Offering for Bitcoin
Michael Saylor's Strategy (MSTR) has announced plans to raise $21 billion via a preferred stock offering for Bitcoin purchases and operational expenses. Key details include:
- Issuance of 8% series A perpetual strike preferred stock at $0.001 per share.
- Proceeds will fund Bitcoin acquisition and working capital needs.
Currently, MSTR holds 499,096 BTC valued at $41.41 billion, with an average purchase price of $66,357. However, the firm has incurred a $3 billion loss on recent acquisitions, purchasing 246,876 BTC at an average of $94,035 since November 2024.
Market Conditions Impacting MSTR
- MSTR stock is facing strong selling pressure, down 6.38% in pre-market trading amid Bitcoin's drop to $80,000.
- Analysts predict Bitcoin could fall to $75,000, impacting MSTR further.
- A drop below MSTR's average buy price of $66,000 may trigger significant sell-offs to stabilize the stock.
Saylor advocates for U.S. government involvement in Bitcoin through a proposed "Strategic Bitcoin Reserve."