Strategy, formerly known as MicroStrategy, has announced plans to raise $2.1 billion through the issuance of Class A preferred shares (STRF). The funds raised will be used for general corporate purposes, including additional investments in Bitcoin. This issuance will be part of an agreement with several financial institutions, including TD Securities, Barclays Capital, and The Benchmark Company.
This is reported by Finway
The STRF preferred shares are set to be perpetual and offer an annual rate of 10%. As noted by former CEO Michael Saylor, these securities have been designed using artificial intelligence technologies. Dividends will be paid quarterly, exclusively in cash.
Investment Strategy and Expectations
At the time of filing the prospectus, there were 8.5 million STRF shares outstanding. The company plans to use the funds to increase its Bitcoin portfolio as well as to replenish working capital. Strategy aims to ramp up its Bitcoin investments in anticipation of the expected price increase of the asset, especially with the recovery of Bitcoin’s historical peak projected for May 21-22, 2025.
Bitcoin Portfolio and Market Reaction
The company currently holds 576,230 BTC, with an average purchase price of $69,726. At the time of publication, Bitcoin is trading at $111,305, indicating a significant unrealized profit for the company of around $24 billion. However, hedge fund founder Jim Chanos of Kynikos Associates considers the company’s strategy absurd and is actively working against it in the stock market.
“These securities were designed using AI”