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Strategy, formerly known as MicroStrategy, has successfully raised $711.2 million through an upsized preferred stock offering. A significant portion of these funds is earmarked for additional Bitcoin purchases, aligning with the company’s ongoing cryptocurrency investment strategy.

Details of the Stock Offering

The company priced its 10.00% Series A Perpetual Strife Preferred Stock at $85 per share, issuing 8.5 million shares. Initially targeted at $500 million, the offering was increased due to strong investor demand. The sale is anticipated to close on March 25, subject to standard regulatory conditions.

After deducting underwriting fees and offering expenses, net proceeds are estimated to total $711.2 million. According to Strategy, these funds will be used for “general corporate purposes, including the acquisition of Bitcoin and for working capital.”

Preferred Shares Features

The preferred shares come with a 10% annual dividend, paid quarterly in cash. If the company misses a dividend payment, compounded dividends will accrue at an increasing rate. This starts at 11% and rises by 1% each quarter, with a maximum cap of 18% per year.

Additionally, Strategy retains the right to redeem all outstanding preferred shares under specific conditions, such as if fewer than 25% of the original shares remain or in the event of certain tax-related occurrences. Shareholders also have the right to demand repurchase if a “fundamental change,” such as a shift in control, takes place.

Bitcoin Accumulation Strategy

This latest fundraising effort follows another significant capital raise by Strategy just days earlier. On March 17, the company announced the purchase of 130 BTC for $10.7 million, using proceeds from a prior preferred stock sale.

Since 2020, Strategy has aggressively pursued a Bitcoin treasury strategy, converting a substantial portion of its balance sheet into BTC. The company has consistently emphasized its long-term commitment to Bitcoin, stating, “We strategically accumulate Bitcoin and advocate for its role as digital capital.”

Broader Business Focus

While Bitcoin remains central to Strategy’s financial strategy, the company also continues to invest in the development of AI-powered enterprise analytics tools. This dual focus underscores its aim to maintain leadership both in the cryptocurrency space and in advanced business solutions.

Strategy’s bold approach to cryptocurrency has positioned it as a key player in the intersection of traditional finance and digital assets, making it a company to watch for those interested in Bitcoin investing and the broader crypto market.

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