Michael Saylor’s New Strategy: $21 Billion in Stock Empties for Bitcoin Investments

Jakarta, Pintu News – Michael Saylor, founder and chairman of Strategy (formerly known as Microstrategy), announced ambitious plans to increase Bitcoin ownership through the capital markets with a planned preferred stock issuance worth up to $21 billion.

Preferred Stock Sales Strategy

According to a Bloomberg report, this latest offering will include series A preferred shares with a fixed interest rate of 8% that are convertible into class A common shares. The sale of these shares will be conducted through an in-market offering program, which provides flexibility in terms of timing and sales price.

This follows an earlier successful effort in January, when Strategy raised $563 million by selling preferred shares offered at $80 per share, lower than their market value. In that offering, the preferred shares attracted significant investor interest, thanks to favorable offering conditions.

This helped the performance of the newly-issued stock, which recorded a gain of up to 18% from its initial price. However, the stock has fallen more than 6% in recent trading sessions, as supply in the market has increased.

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Market Fluctuations and Their Impact on Strategy

Despite massive buying plans, Strategy did not make any Bitcoin (BTC) purchases between March 3 and 9, as reported in a filing with the US Securities and Exchange Commission (SEC). This delay comes amid fluctuations in the cryptocurrency market, where Bitcoin (BTC) recently traded at $79,000, down 4.5% in a day and about 18% in a month.

These declines reflect broader trends in the market, which have also affected the performance of preferred shares. Meanwhile, Strategy (MSTR) shares also saw a decline of around 15% to $238 on Monday, reflecting broader market trends that have led to a decline of around 10% in the company’s shares this year. However, since Saylor began investing in Bitcoin (BTC) as an inflation hedge in 2020, the stock has surged more than 2,200%, while Bitcoin (BTC) itself has risen more than 600%.

Strategic Steps in the Midst of Government Policies

The announcement of Strategy’s plans coincides with the latest developments from the US government. President Donald Trump recently signed an executive order to create a US strategic Bitcoin (BTC) reserve, which will be financed through cryptocurrencies seized in legal proceedings. This demonstrates the growing recognition and integration of cryptocurrencies in government policy.

The move is also part of Strategy’s broader strategy to secure $42 billion over the next few years through various securities offerings. This focus includes selling fixed-income securities while managing the sale of common stock to fund additional Bitcoin (BTC) purchases. Currently, the company owns approximately 499,096 Bitcoin (BTC), with a value of approximately $42 billion.

Conclusion

With this major move, Strategy seeks to strengthen its position in the cryptocurrency market while offering attractive investment opportunities through preferred shares. Despite market fluctuations, the innovative and proactive approach to capital management and crypto assets demonstrates significant growth potential for the company and its investors.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Trading crypto carries high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• NewsBTC. Michael Saylor’s Strategy Unveils $21 Billion Stock Issuance for Bitcoin Investment. Accessed on March 12, 2025
• Featured Image: CryptoSlate