In a bold move to consolidate its position in the digital finance world, Strategy has caused a stir in the financial market by deciding to dramatically increase the size of its STRC preferred stock issuance, showing a clear determination to expand its Bitcoin investment strategy.
Quadrupling the Stock – Strategy’s Bold Strategy
Strategy initially announced plans to IPO 5 million STRC shares, primarily to raise capital to buy more Bitcoin and support its operations. However, in a recent update, that number has quadrupled to $2 billion, according to Bloomberg. This is a clear signal that the company is accelerating its strategy of accumulating Bitcoin as a key asset.
STRC’s share price is set at $90/share, below the initial target of $100, with an initial dividend of $9%/year, adjusted monthly and compounded if not paid. This is an attractive return in a volatile market.
STRC: Positioning between profit and risk
STRC shares are rated higher than STRK and STRD, but still behind securities such as Strife or convertible bonds. “Big guys” such as Morgan Stanley, Barclays and Moelis are the advisory units for the issuance, partly ensuring the prestige of this offering.
However, it is not without risks. Strategy is facing a class action lawsuit in Delaware over alleged illegal changes to STRK’s stock terms without shareholder approval. While the lawsuit is still in its early stages, it is a factor investors should be aware of when participating in this bold strategy.
Bitcoin – The New “Treasury Asset” of the 21st Century
The latest Bitcoin purchase from July 14-20 saw Strategy buy an additional 6,220 BTC, bringing its total Bitcoin holdings to 607,770 BTC, or more than 3% of the total global circulating supply. The company’s long-term goal is to own 1 million BTC – an unprecedented number in the history of the market.
Strategy President Michael Saylor shared that the company currently holds more than $11.1 billion worth of Bitcoin. In July alone, they bought nearly 5,700 BTC – equivalent to $676 million.
Mastering digital financial strategy
Strategy's event is a vivid demonstration of the importance of building a flexible financial strategy that dares to embrace new technologies. With a vision of sustainable development, HVA Group is playing a bridging role in helping Vietnamese businesses access decentralized finance trends and digital investments safely and effectively.
Conclude
Strategy’s push to own Bitcoin has brought a lot of attention from the market, highlighting the opportunities and risks that investors need to consider. In an era where technology and finance are converging, bold investment strategies like Strategy’s are for the next wave of finance.
