Michael Saylor Explains Strategy’s Bitcoin Bet: Key Takeaways

U.Today - Michael Saylor’s Strategy is using every tool at its disposal to pool funds to build on its mammoth Bitcoin stockpile. As the week began, on March 18, Strategy announced the launch of STRF ("Strife"), a new perpetual preferred stock offering, open to institutional and select noninstitutional investors. The most recent series of preferred stock differs from the original STRK in that it has a higher coupon (10% vs. 8%) and no common share conversion clause.

Strategy stated that the net proceeds from the offering will be used for general corporate purposes, including Bitcoin acquisition and working capital.

Fast forward to Friday, and Strategy announced the pricing of the Strife Perpetual Preferred Stock (STRF) offering, upsizing the deal from $500 million to $722.5 million. In its initial sale, Strategy sold 8.5 million shares of its Series A Perpetual Strife Preferred Stock for $85 apiece, raising about $711.2 million; it had originally wanted to raise $500 million.

At last check, the company owned more than 499,200 Bitcoin, so the anticipated next round of Bitcoin purchases might push the Strategy stash to 500,000 BTC.

Everyone wants winning strategy

In his next tweet, Saylor wrote, "Everyone wants a winning strategy," which might explain Strategy’s Bitcoin acquisition push.

Under Saylor’s leadership, MicroStrategy has established itself as one of the largest institutional holders of Bitcoin. The enterprise-software-company-turned-leveraged-Bitcoin-proxy has been buying Bitcoin since late October, with current holdings worth over $42 billion.

Strategy has laid out its plans to raise $42 billion over the next few years by selling securities to acquire Bitcoin, with a growing emphasis on its capacity to offer fixed-income assets.

At press time, Bitcoin was valued at $84,386.

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