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Michael SaylorCo-founder and chairman of Strategy (formerly MicroStrategy), more intensively the efforts to acquire Bitcoin (BTC) by utilizing capital markets and announcing plans to issue up to $ 21 billion in preferent shares.
Strategy plans for important sales of preference shares
According to For Bloomberg, the new offer will consist of 8% Series A-Voorweerdurer Shares of the preference, which are convertible in ordinary shares of class A. The company is planning to sell these shares through a “At the Market Offer” program, which makes flexibility in timing and prices possible.
This approach builds on an earlier successful effort in January, when the strategy yielded $ 563 million by issuing preferent shares that each had priced $ 80, which were offered with a discount on their market value.
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Preferred shares are unique hybrid effects that combine functions of both equity and debts, and offer investors a fixed dividend and at the same time provide a claim to company resources. The favorable conditions of the January deal were reportedly attracted considerable investor’s interests, which contributed to a strong performance of the newly published stock.
Since the end of October, Strategy has been actively gaining Bitcoin and the latest capital increase is part of a broader strategy to protect $ 42 billion in the coming years through various securities offers.
This includes a focus on selling securities with fixed -income income and at the same time managing ordinary stock sales to finance extra BTC -purchases. The company currently has around 499,096 Bitcoin, with a value of around $ 42 billion.
Shares fall by 10% in the midst of Bitcoin -Crash
Despite this purchase plan, Strategy reported that according to an application it did not buy a Bitcoin between March 3 and March 9 at the US Securities and Exchange Commission.
This break comes in the midst of a fluctuating cryptocurrency market, where the leading crypto of the market, BTCRecently, $ 79,000 decreases by 4.5% for the day and about 18% on the monthly period.
The preferred market has seen varied performance; While the shares climbed 18% of their first prizes, they were in a recent trade session for a decrease of more than 6% as the offer increased.
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Despite this fluctuation, the preferred shares have surpassed the ordinary shares and Bitcoin in the same period, which suggests a robust demand from investors.
As can be seen in the daily graph below, shares of strategy (Mstr), also experienced a decrease from approximately 15% to $ 238 on Monday, as a result of wider market trends that the shares of the company have reduced around 10% this year.
The shares, on the other hand, have risen more than 2,200% since Saylor started investing in Bitcoin as an inflation hedge in 2020, while Bitcoin itself has risen by more than 600%.
The announcement of the strategy plans coincided with recent developments from the US government. President Donald Trump has signed an executive order to create a strategic American Bitcoin reserve that will be financed by cryptocurrencies forfeited in legal proceedings.
Featured image of Dall-E, graph of TradingView.com
Credit : www.newsbtc.com
