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Strategy Upsizes STRC Stock Offering to $2 Billion with Plans to Buy More Bitcoin
In a recent report, Strategy has announced its decision to significantly increase the size of its preferred equity raise from $500 million to an enormous $2 billion. The massive upsize is intended to support further purchases of Bitcoin.
According to company filings, proceeds from the raise will be used for general corporate purposes, including the acquisition of more Bitcoin. This comes as no surprise, given Strategy’s already substantial holding of 607,770 BTC valued at $72.4 billion, which represents approximately 3% of all Bitcoin in circulation.
The shares are expected to price at $90 per share, a slight decrease from the initial expectation of $100 per share. The number of shares initially set at 5 million is also likely to increase as part of the expanded offering. At $90 per share, investors will receive an initial 9% annual dividend, paid monthly.
The STRC stock issuance marks Strategy’s fourth preferred share offering. These new shares will be ranked senior to Strategy’s Strike and Stride preferreds and common stock but junior to previously issued Strife preferreds and outstanding convertible bonds.
As a result of this massive influx of capital, investors can expect significant implications for the cryptocurrency market in general, particularly in terms of Bitcoin supply and demand dynamics.
Source: cryptobriefing.com
