Strategy Returns to Bitcoin Acquisition with $21 Billion Preferred Stock Offering

Strategy’s New $21 Billion Plan

Michael Saylor’s Strategy (MSTR) made headlines on Monday with a significant announcement. They have launched a $21 billion at-the-market (ATM) offering of their Series A preferred stock (STRK). The funds generated are primarily aimed at purchasing more bitcoin.

Strategy raising more capital

What to Know:

After a considerable downturn, the news led to a slight recovery in bitcoin (BTC) prices, lifting them above $83,000.
Currently, the company has nearly 500,000 bitcoins in its holdings.

This new initiative marks Strategy’s return to bitcoin acquisition after stepping back for several weeks. If carried out completely, the proposed offering could yield approximately $1.68 billion in annual dividends, a figure which would likely necessitate additional funding strategies through common stock capital increases or profit generated from operational activities.

MSTR shares have seen a 5.5% decline in pre-market trading, reflecting a 50% drop from their peak last November.

For further details, check the official announcement.