Key takeout
- The strategic plan is to offer up to $21 billion in preferred stock to expand Bitcoin holdings.
- We use a variety of financing methods, including debt provision and stock issuance, to fund our Bitcoin acquisitions.
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According to Monday's filing with the SEC, the strategic plan will sell Series A constant strike preferred stock, up to $21 billion, through market offerings. The company plans to use the net revenue from the offering for general corporate purposes, such as Bitcoin acquisitions and working capital.
As detailed in the filing, the NASDAQ listing companies have entered into sales agreements with several financial institutions, including TD Securities, Barclays Capital and Cantor Fitzgerald, to manage the stock sales. Preferred stocks will be traded on the NASDAQ Global Select Market under the ticker “STRK”.
The offering will be carried out over time through 12 financial institutions that serve as distributors and receive up to 2% of total revenue.
Preferred shares have an annual dividend of 8.00% based on a liquidation appetite of $100 per share and are paid quarterly on March 31st, September 30th, September 30th and December 31st. Shareholders convert $0.1000 in Class A stock per preferred share into Class A common stock, with an initial conversion price of $1,000 per share;
The offering shows another move by the strategy to increase Bitcoin Treasury position. The company previously used debt provisions and stock issuance to fund the acquisition of Bitcoin under the leadership of Chairman Michael Saylor, who defended Bitcoin as a reserve asset for the Treasury.
Earlier this year, the Strategy announced plans to raise $2 billion through stock offerings to fund more Bitcoin purchases as part of the 21/21 plan.
The 21/21 plan is the company's strategic initiative to raise a total of $42 billion over three years, including $21 billion in stock and $21 billion in fixed income products. The goal is to use your raised capital to earn more Bitcoin and further strengthen your position as the world's largest Bitcoin financing company.
In early 2025, the strategy had already raised $15 billion through equities and $3 billion through convertible debt. The company is focusing on issuing fixed income this year.
The strategy currently holds 499,096 BTC, worth $41.5 billion at its current market price.
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