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Investing.com-- Michael Saylor’s Strategy (formerly MicroStrategy (NASDAQ:MSTR)) substantially increased the value of a planned preferred stock offering, Bloomberg reported on Thursday, as the company enjoys a boom in Bitcoin prices.
Strategy, the world’s biggest corporate Bitcoin holder, will increase the size of a planned preferred stock issuance to $2.8 billion from $500 million, Bloomberg reported, citing a person familiar with the transaction.
The $2.8 billion is likely to be deployed towards increasing Strategy’s Bitcoin stash, which has been at the heart of the company’s valuation over the past year.
Strategy currently holds a total of 607,770 Bitcoin worth a total $43.61 billion. Its Bitcoin stash is closely tied to its share valuation, as the company’s acquisition of the crypto turned it into an investment vehicle for Bitcoin, which attracted investors seeking Bitcoin exposure.
A recent spike in Bitcoin prices, to record highs above $123,000, also greatly boosted the value of Strategy’s holdings, while pushing the company’s shares to an eight-month high.
Bitcoin and broader crypto prices rallied in July amid signs of more crypto regulation in the United States.