Strategy Launches $1 Billion Preferred Stock Offering to Boost Bitcoin Reserves
Strategy, the largest corporate holder of Bitcoin, is launching a $1 billion preferred stock offering to attract investors and fund additional BTC purchases.
The STRD Gamble
- The new issue, "Series A Perpetual Stride Preferred Stock (STRD)", offers a 10% annual yield with no management fees.
- Strategy plans to issue 11.76 million STRD shares to raise approximately $979.7 million post-expenses, up from an initial target of $250 million.
- STRD shares are riskier as they sit beneath other preferred share classes (STRF and STRK) in the capital stack.
- Unlike the STRK convertible instrument, STRD is non-convertible and features a non-cumulative dividend.
- Capital raised will focus on increasing Strategy's Bitcoin reserves.
Bulls and Bear Fight for Dominance
- Recent data shows miner-to-exchange flows exceeding $1 billion per day, often linked to sell-offs during price corrections.
- Bitcoin accumulation is rising, particularly among wallets holding between 10 and 100 BTC, indicating renewed investor confidence.
- Despite this, accumulation has not yet impacted prices significantly; buyers remain cautious.
- The market displays a rotation: older coins are sold while newer participants accumulate, but no clear trend is evident.