Strategy upsizes stock offering to $711m, plans more Bitcoin buys

The strategy, formerly known as Microstrategy, has raised $ 711.2 million thanks to a privileged stock offer, most of the funds reserved for additional bitcoin purchases.

Business Dear Its 10.00% Series has perpetual Strife preferred to be favored at $ 85 per share, offering 8.5 million shares. The sale should end on March 25, pending standard regulatory conditions.

Initially set at $ 500 million, the offer has been increased due to the high demand from investors.

The net product, after deduction of subscription fees and tenders, is estimated at $ 711.2 million.

The strategy said that funds would be used for general purposes, including the acquisition of Bitcoin and for the working capital. “”

‘We strategically accumulate bitcoin’

The privileged actions have an annual dividend of 10%, paid quarterly in cash. If the strategy lacks a payment of dividends, the compound dividends will accumulate at an increasing rate, from 11% and up 1% per quarter, up to a maximum of 18% per year.

The company retains the right of redeem All privileged actions in circulation if less than 25% of the actions issued originally remain or if specific events related to tax occur. Holders will also have the right to demand the buyout if a “fundamental change”, as a change of control, takes place.

This marks the second increase in major strategy capital in recent weeks. On March 17, the company disclosed He had bought 130 BTC for $ 10.7 million using the product of an previous privileged stock sale.

The strategy has aggressively prosecuted A bitcoin (BTC) Treasury strategy since 2020, converting its balance sheet into BTC.

“We strategically accumulate bitcoin and defend its role of digital capital,” said the company. The company also continues to develop business analysis tools fueled by AI alongside its Bitcoin holdings.