Strategy issues new batch of shares to buy bitcoin

Strategy, led by prominent Bitcoin proponent Michael Saylor, has announced the issuance of 2.5 million perpetual preferred shares under the ticker symbol STRD (Stride).

The proceeds from the placement will be used for general corporate needs, including potential purchases of the first cryptocurrency. According to the official statement of the company, owners of STRD shares will receive regular dividends in the amount of 10% per annum. At the same time, these securities do not provide for conversion into ordinary shares, which makes them a tool exclusively for obtaining passive income.

Strategy has previously launched similar products — bonds called Strike (STRK) with a yield of 13% and Strife (STRF) with a yield of 10%. The company itself positions such financial instruments as “the first securities created with the participation of artificial intelligence.” The issue was part of a larger strategy for the company to attract $84 billion as part of a plan to increase its bitcoin reserves. At the moment, Strategy’s portfolio holds 580,955 BTC, the total value of which exceeds $60 billion.

Let us recall that the company has been actively buying bitcoin since 2020, increasing its position to one of the largest private reserves in the world. According to open sources, the average price of bitcoin acquisition by the company is $70 thousand per coin. Thus, the new round of issuing shares and bonds demonstrates Strategy's sustainable strategy to attract capital for further expansion of its digital assets, especially in an environment where the interest of major players in bitcoin continues to grow.

Earlier, it was reported that Japanese investment company Metaplanet, which is informally called the “Japanese MicroStrategy” in the media due to its active strategy of buying bitcoins, announced the acquisition of 1,088 BTC worth about $117 million.