Michael Saylor- Bitcoin Accumulation Continues: Strategy’s $1B Investment Plan
Michael Saylor– Strategy, the world’s largest corporate holder of Bitcoin, has announced plans to raise nearly $1 billion through a new stock offering. The company, led by executive chairman Michael Saylor, intends to issue 11,764,700 shares of its new 10.00% Series A Perpetual Stride Preferred Stock at $85 per share.
According to a company announcement on June 6, Strategy expects to net approximately $979.7 million after underwriting discounts and other expenses. The funds will be used for “general corporate purposes, including the acquisition of Bitcoin and for working capital.”
A New Financing Model Beyond Common Stock and Debt
This move marks a shift from Strategy’s usual financing methods, which have historically relied on common stock sales and convertible debt. The new perpetual preferred shares will offer non-cumulative 10% dividends to institutional and professional investors.
At current Bitcoin prices of around $103,800, the funds raised could allow Strategy to acquire up to 9,633 BTC—far surpassing its recent June 2 purchase of 705 BTC for $75.1 million.
Strategy’s stock trades at a significant premium over the fair value of its Bitcoin holdings and software business. As VanEck stated in a May 22 report, “We calculate a +112% premium to the combined fair value of MSTR’s BTC and core software business.”
Markus Thielen, CEO of 10x Research, noted, “Every time MicroStrategy issues new shares to retail investors—shares backed by Bitcoin worth only a fraction of the stock price—the company pockets the difference and frames it as Bitcoin yield.”
While Strategy’s premium is high, it remains lower than that of Japanese firm Metaplanet, whose premium recently exceeded $596,000.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
