Financial Insights That Matter
Michael Saylor’s Strategy (NASDAQ:MSTR) is making another aggressive move, launching a $21 billion at-the-market (ATM) offering for its 8.00% Series A perpetual preferred stock. The goal? More bitcoin. With this capital raise, the company is set to push its holdings past 500,000 BTC, reinforcing its position as the largest corporate bitcoin holder. The news gave BTC a slight boost, climbing back above $83,000 after a volatile weekend dip to $80,000.
But the market isn’t cheering just yet. Strategy’s stock took a hit, with MSTR down 11.2% at 12.01pm. The preferred stock is convertible into class A common shares, and the company plans to use the funds for general corporate purposes, including further BTC accumulation and working capital. If fully deployed, the offering could trigger an annual dividend payout of roughly $1.68 billionlikely requiring more stock issuances or operational cash flow to sustain.
This latest move reinforces Strategy’s high-stakes bitcoin play, even as crypto markets remain choppy. Investors now face a familiar dilemma: dilution risk versus the potential upside of an ever-growing BTC bet. If bitcoin continues its upward trajectory, Strategy’s gamble could pay off. If not, the pressure will be on.
This article first appeared on GuruFocus.
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