Strategy Plans to Raise $500 Million to Expand Bitcoin Holdings

MicroStrategy, now rebranded as Strategy, has made another move to expand its Bitcoin holdings, filing with the U.S. Securities and Exchange Commission (SEC) to offer $500 million worth of shares.

The firm plans to raise the capital by selling 5 million shares of its 10% Series A Perpetual Strife Preferred Stock, each valued at $100, with the funds designated for further Bitcoin acquisitions.

The company has made it clear in its filing that the proceeds will be allocated toward general corporate purposes, including the acquisition of more Bitcoin.

However, Strategy also acknowledged the potential risks of Bitcoin price fluctuations, which could lead to the need to convert the Bitcoin it buys into cash at a loss compared to the amount raised through this offering.

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This move comes shortly after a similar announcement from Strategy, which revealed plans to raise $21 billion by selling shares in its 8% Series A perpetual strike preferred stock.

The company also disclosed that it had recently purchased 130 BTC for $10.7 million, bringing its total holdings to 499,226 BTC at an average price of $66,360 per coin.

Alexander Stefanov