Michael Saylor’s Strategy Unveils $21 Billion Stock Issuance For Bitcoin Investment
Michael Saylor, co-founder and chairman of Strategy, plans to issue up to $21 billion in preferred stock to acquire Bitcoin. The offering will consist of 8% series A perpetual-strike preferred shares, convertible into class A common stock, sold through an “at the market offering” program. This follows a successful $563 million raise in January from preferred shares priced at $80 each. Strategy aims to secure $42 billion over the next few years through various securities offerings, including fixed-income securities, while holding approximately 499,096 Bitcoin valued at around $42 billion. Despite plans to purchase Bitcoin, Strategy did not acquire any between March 3 and March 9 amid a fluctuating market, where Bitcoin recently traded at $79,000. Strategy's shares dropped about 15% to $238, reflecting broader market trends, while preferred shares have outperformed common stock and Bitcoin. Since Saylor began investing in Bitcoin in 2020, shares have surged over 2,200%, and Bitcoin has risen over 600%.
