Strategy (previously known as micro strategy) has unveiled plans to pick up $ 21 billion through his series A Preferred Stock (STRK) to acquire more Bitcoin.
According to March 10th rackThe company had concluded a sales agreement to issue and sell shares of its 8.00% Series A Petual Strike Preferred Stock at the Market (ATM). The shares will be priced at $ 0.001, with the total range that is covered at $ 21 billion.
Investors who hold Strk can exchange their shares for ordinary shares of class A, although this is subject to specific conditions.
Strategy stated that the sale under the ATM program will gradually be implemented, taking into account factors such as trade volume and price fluctuations.
Understand
Strk is a perpetual preference shares that offer extra liquidity for the Bitcoin acquisition plans of the strategy.
In contrast to bonds with fixed duration data, eternal preference stocks do not have a repayment period. Instead, STRK offers an annual dividend of 8% as long as the company remains operational.
Since the introduction of this financial instrument in January, the strategy has already raised more than $ 584 million through its convertible supply offer.
The company too claims Strk has been the best performing and most liquid -preferred stock of the past decade.
Bitcoin -purchases
In the meantime, the company is planning to use the Netto yield of the ATM program for general business purposes, including the acquisition of more Bitcoin.
This step is in line with the continuous approach to the strategy to strengthen its Bitcoin position through several financial mechanisms, including share financing, debt issue and operational cash flows.
On 24 February the company made its most recent Bitcoin purchase, with 20,356 BTC for around $ 2 billion. This pushed its total Bitcoin possession to 499,096 BTC, with a value of more than $ 47 billion.
Since the launch of his Bitcoin accumulation strategy under the leadership of Michael Saylor, the strategy has spent $ 33.1 billion, including reimbursements, at an average purchase price of $ 66.357 per BTC.
Despite the latest fundraising, the shares of the strategy has had to deal with downward pressure. According to Google Finance factsMSTRA acts at $ 252.48 after a decrease of 12% in the past day.
