Strategy, the world’s largest corporate Bitcoin holder, plans to raise nearly $1 billion through a new stock offering to fund additional Bitcoin purchases.
The company, led by executive chairman Michael Saylor, plans to issue 11,764,700 shares of 10.00% Series A Perpetual Stride Preferred Stock at a public offering price of $85 per share.
Strategy estimates to raise approximately $979.7 million from the net proceeds after deducting the underwriting discounts and commissions for the firm’s offering expenses, according to a June 6 announcement from the firm.
The firm plans to use the nearly $1 billion for “general corporate purposes, including the acquisition of bitcoin and for working capital.”
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The move quadruples the company’s previously announced $250 million raise and introduces a new financing route beyond its historical use of common stock and convertible debt.
In contrast, Strategy’s perpetual preferred stocks will pay professional and institutional investors non-cumulative dividends equal to 10% of the stated amount.
At the current price of $103,800 per Bitcoin (BTC), the $1 billion would enable Strategy to acquire an additional 9,633 BTC, significantly more than its latest purchase of 705 Bitcoin for $75.1 million announced on June 2.
Related: Blockchain Group adds $68M in Bitcoin to corporate treasury
This is a developing story, and further information will be added as it becomes available.
