Strategy, formerly known as MicroStrategy, said on Tuesday that the software firm plans to raise as much as $500 million through a new offering to buy more Bitcoin.
The company plans to issue a new form of perpetual preferred stock called Strife, which will cost $100 per share and pay a fixed rate of 10%, the company said in a press release.
Available only to institutional investors, Strategy’s new stock would pay its first dividend in around 100 days. What makes the new offering distinct to Strategy’s so-called Strike, another form of perpetual preferred product, is that its dividend is only payable in cash.
Strategy was able to raise billions of dollars last year by selling stock and so-called convertible bonds, which offer 0% interest. Strategy’s Strife offering pays 10% interest, which is more than the 8% dividend for Strategy’s Strike offering in January.
On Monday, the company announced that it had purchased around $10.7 million worth of Bitcoin. Within holdings of the asset that are currently worth around $41.4 billion, the recent purchase grew Strategy’s Bitcoin stash by approximately 0.026%.
Although the company waited several weeks to unveil its latest Bitcoin purchase, analysts told Decrypt that there’s no indication Strategy’s Bitcoin buys will cease soon, despite market conditions that have made it harder for the company to raise cash to buy Bitcoin.
https://x.com/saylor/status/1901969874441654434
On Tuesday, the company’s stock price dropped when markets opened, showing a 6.5% decrease at around $275, according to Yahoo Finance. Strategy shares have fallen 5.5% on the year, but have still doubled in value over the past six months.
Speaking at Future Proof Citywide in Miami on Monday, Strategy co-founder and Executive Chairman Michael Saylor noted Bitcoin’s recent price drop. Shifting rate cut expectations, tariffs, and economic fears have led to a “macro, risk-off zone,” he said.
“When that flips, I think Bitcoin will rip forward with a vengeance,” he added.
Edited by James Rubin
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