Why Did Strategy Just Raise $711M? Spoiler: It’s Not for a New Coffee Machine! ☕💸

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What to know:

  • Strategy raised a whopping $711.2M by selling a new series of preferred stock. 💰
  • Most of this cash is expected to be funneled into buying more bitcoin. Because why not? 🤷‍♂️
  • These new acquisitions will likely push Strategy’s bitcoin stash above 500,000 tokens. Talk about a digital hoarder! 🪙

So, here we are, folks. Strategy (MSTR) is gearing up to dive headfirst into the bitcoin pool again, after pricing an upsized sale of its latest preferred stock issue. I mean, who needs a savings account when you can just buy more bitcoin, right?

The company sold 8.5 million shares of its 10% Series A Perpetual Strife Preferred Stock at a price of $85 each, raising around $711.2M. They initially aimed for a modest $500M, but I guess they decided to go big or go home. 🎉

This latest series of preferred stock is a bit different from the original STRK. It comes with a higher coupon (10% versus 8%) and, get this, no common share conversion provision. Because who needs options when you can just throw money at bitcoin?

Last I checked, the company owned more than 499,200 bitcoin. So, this fresh round of purchases should catapult their bitcoin stack well above 500,000 tokens. I can only imagine the board meetings: “More bitcoin? Yes, please!”

Meanwhile, MSTR shares are down a smidge in premarket action, hovering just under $300. And bitcoin? It’s chilling at a steady $84,000. Just another day in the wild world of cryptocurrency! 🚀

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2025-03-21 15:27