- A report from Bloomberg has cited anonymous sources claiming that Michael Saylor’s firm Strategy is planning to quadruple the size of its STRC preferred stock offering from US$500 million to US$2 billion.
- The extra capital will reportedly be used to fund further Bitcoin accumulation by the software-turned-Bitcoin strategy company.
- In the past 12 months Strategy’s share price has surged 156% on the back of Bitcoin’s strong performance.
Anonymous sources have told Bloomberg that Michael Saylor’s software-turned-Bitcoin treasury firm, Strategy, plans to quadruple the size of its preferred stock offering, STRC (also known as Stretch) — taking it from US$500 million (AU$759.8m) to US$2 billion (AU$3b) in a bid to raise more capital for another Bitcoin buying spree.
Strategy’s Series A perpetual shares were valued at US$90 (AU$137) on Thursday US time and were paying a dividend of 9%, according to the anonymous sources cited in Bloomberg’s report. The financing of the offering, which includes 5 million preferred shares, is being underwritten by several large financial firms including Morgan Stanley and Barclays.
The news didn’t seem to have a large impact on the value of Strategy’s common stock, which closed Thursday just below US$415 (AU$630) — up 0.55% on the day.
In the past year though, Strategy’s share price has soared 156% according to data from Yahoo Finance. The uplift has been largely driven by Bitcoin’s strong performance. Bitcoin’s price over the same period has increased by about 90%.
Since first embracing Bitcoin in 2020, Strategy has accumulated 607,770 BTC at the time of writing valued at around US$72 billion (AU$109b), and is currently by far the largest corporate holder of Bitcoin.
Related: Strategy Unveils “STRC” Perpetual Preferred Stock to Power Its Bitcoin Hoard
More Corporates Getting Bitcoin on Their Balance Sheets
On the back of Strategy’s success, the popularity of the Bitcoin spot exchange-traded funds (ETFs), and the improved regulatory environment in the US, a growing number of corporates are adding Bitcoin to their balance sheets.
According to data from Bitcointreasuries.net, a website which tracks corporate Bitcoin holdings, the total BTC held by the top 100 publicly-listed corporate holders is currently 917,612. The total held by all publicly-listed companies is 918,133.
Strategy accounts for the majority of these holdings at just over 66%. For a better idea of Strategy’s dominance, the second largest holder, Bitcoin miner MARA Holdings, holds just 50,000 BTC (compared to Strategy’s 607,770).
Related: Trump Media Bets Big on Bitcoin with $2 Billion Treasury Play
Other notable corporate holders include the Trump family-owned Trump Media and Technology Group, which holds 18,430 BTC and Coinbase with 9,267 BTC. Bitcointreasuries.net finds the largest Australian publicly listed holder of Bitcoin is digital asset fund manager, DigitalX with 499 BTC.
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