Strategy, formerly known as MicroStrategy, the software company founded by Michael Saylor, renowned for being a major investor in Bitcoin, has announced a plan to issue a new set of Preferred Stock worth $500 million. This consists of 5 million shares, priced at $100 per share.
In the past, Strategy has used funds to purchase Bitcoin through convertible bond offerings, consistently adding to their Bitcoin holdings almost every week. In the week of March 10-16 alone, they acquired an additional 130 BTC for $10.7 million, at an average cost of $82,981 per BTC. These figures have significantly decreased compared to previous Bitcoin purchases, leading Strategy to opt for a new financial product for investors.
Preferred Stock differs from common stock as it does not grant voting rights but prioritizes capital repayment. In this case, Strategy has specified that they will provide higher dividends on a quarterly basis compared to their previous bond offerings.
Source: Strategy via CoinDesk
TLDR: Strategy, led by Michael Saylor, known for investing in Bitcoin, announces a $500 million Preferred Stock offering while transitioning away from traditional Bitcoin purchases.
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