Strategy aims to raise $500 million through Strife, a new preferred stock, for further Bitcoin acquisitions. Facing recent market challenges, the firm’s Bitcoin holdings have expanded, with positive expectations for future growth expressed by co-founder Michael Saylor.

Strategy, previously known as MicroStrategy, announced plans to raise up to $500 million through a new stock offering aimed at purchasing additional Bitcoin. The company intends to issue a perpetual preferred stock called Strife, priced at $100 per share, with a fixed dividend rate of 10%. This stock is exclusively available to institutional investors, and the initial dividend payment is expected in approximately 100 days. Unlike its other offering, Strike, which has an 8% dividend rate, the Strife stock will only dispense cash dividends.

In the preceding year, Strategy raised billions through stock sales and convertible bonds that featured 0% interest. The recent purchase of approximately $10.7 million in Bitcoin further increased its Bitcoin holdings, valued at around $41.4 billion. Although the company delayed revealing this acquisition, analysts conveyed that there is no sign of an impending cessation of Bitcoin purchases despite challenging market conditions for capital acquisition.

Following the announcement, Strategy’s stock price encountered a decline of 6.5%, settling around $275, as reported by Yahoo Finance. Although the company’s shares have decreased by 5.5% this year, they have nevertheless experienced a remarkable doubling in value over the past six months. During a recent event in Miami, co-founder and Executive Chairman Michael Saylor discussed the current economic climate influencing Bitcoin’s price fluctuations and expressed optimism for a potential rebound, stating, “When that flips, I think Bitcoin will rip forward with a vengeance.”

In conclusion, Strategy is taking significant steps to expand its Bitcoin portfolio by raising $500 million through a new stock offering, Strife, which offers a 10% cash dividend to institutional investors. Despite recent stock price declines, the company remains committed to Bitcoin purchases. Michael Saylor’s insights indicate a positive outlook for Bitcoin’s future performance contingent on favorable market conditions.

Original Source: decrypt.co

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