Skip to main content

Controlling More Bitcoin: Strategy Unveils $4.2B BTC-Backed Security

Strategy is raising more money to buy Bitcoin. Based on reports, the company filed with the US Securities and Exchange Commission on July 31 to offer up to $4.2 billion of its new Variable Rate Series A Perpetual Stretch Preferred Stock, or STRC. The move follows a recent IPO that funded another large Bitcoin purchase.

STRC Stock Sale Details

According to the filing, Strategy (formerly MicroStrategy) can sell STRC shares at market prices through TD Securities, Barclays Capital, The Benchmark Company, Clear Street, and Morgan Stanley.

Each share last traded at $94.50 on Nasdaq. There is no fixed schedule for the sales, giving the company room to pick the best moments.

Reports have disclosed that the net proceeds are to cover general corporate needs and more Bitcoin buys, but the exact split is not set yet.

Strategy’s recent IPO brought in $2.52 billion. Based on reports, the firm then turned $2.46 billion of its $2.47 billion net proceeds into about 21,021 BTC.

That haul lifted its total Bitcoin stash to 628,791 coins. At an average cost of $73,227 per coin, the company now owns nearly 3% of Bitcoin’s circulating supply. This big purchase shows how Strategy uses fresh capital almost immediately to boost its holdings.

Q2 Results And Targets

Strategy’s Q2 report shows operating income of about $14 billion. That number includes an unrealized gain of $14 billion on its Bitcoin holdings, driving a little over 7,000% jump from last year.

The company also posted a gross profit of $78 million from its software subscriptions and product licenses. In the first half of the year, Strategy raised more than $10 billion through at-the-market programs and IPOs.

Strategy brought in $584 million with STRK shares, $723 million with STRF, and $1 billion with STRD. The company’s leadership has set stronger targets for the rest of the year: a 30% BTC yield and $20 billion in BTC gain.

Market Impact And Outlook

According to data from BitcoinTreasuries, 285 entities hold Bitcoin in their coffers, though most own only about 3.64 BTC each. Strategy’s bold fund-raising and buying steps could keep demand high and support Bitcoin’s price in coming months.

At the same time, investors will watch whether the company can meet its dividend payouts if Bitcoin’s price dips. US regulators are also paying close attention to big corporate moves in crypto.

Strategy’s approach shows how a public company can use stock sales to add more Bitcoin to its balance sheet. It will face tests if markets get shaky. For now, its big backing of Bitcoin keeps the spotlight on how far corporate treasuries can go in the crypto world.

Featured image from Unsplash, chart from TradingView



from Bitcoinist.com https://ift.tt/ldaYqpb
Labels:

Comments

Post a Comment

Popular posts from this blog

Bitcoin ETFs Post Second Straight Week Of $500 Million Outflow — Details

The US-based spot Bitcoin ETFs (exchange-traded funds) recorded their second consecutive week of significant outflows over the last five-day trading period. This recent run of disappointing performances reflects the ongoing shift in investor sentiment in the United States. Over the past year, strong inflows into the US Bitcoin ETF market have constantly been associated with positive action for the BTC price. Fittingly, the price of Bitcoin has been consolidating over the past few weeks, struggling to pick up any real momentum. Bitcoin ETFs Record Fourth Consecutive Outflow Day According to the latest market data , the US Bitcoin ETFs registered a total daily outflow of $62.77 million on Friday, February 21. This latest round of withdrawals marked the fourth straight day (and the eighth day in the last nine trading days) that the crypto-based products would witness a net capital outflow. The Grayscale Bitcoin Trust (with the ticker GBTC) accounted for a larger percentage of Friday’...
Post a Comment
Read more

Bitcoin Remains Range-Bound As Volatility Declines – Analyst Explains Price Action

Bitcoin has experienced frustrating price action in recent weeks, leaving investors impatient about its short-term direction. The price has been testing crucial supply levels between $98K and $100K, struggling to break out as uncertainty dominates the market. The lack of a clear move has led to speculation about whether BTC is preparing for a breakout or another correction. Adding to the uncertainty, the market was hit by negative news on Friday when crypto exchange Bybit was hacked, resulting in the theft of $1.4 billion in ETH. The incident caused fear and volatility, briefly dragging prices lower. However, Bybit responded quickly to reassure investors, easing some of the initial panic and stabilizing the market. Despite this, Bitcoin continues to consolidate in a tight range. Crypto expert Daan shared an analysis on X, noting that BTC is still ranging while volatility is steadily decreasing. As price compression increases, traders are on high alert for a potential explosive move....
Post a Comment
Read more

OpenSea Dodges A Bullet As SEC Drops Investigation—Details

In a move that many in the crypto industry view as a positive signal, the US Securities and Exchange Commission (SEC) has officially discontinued its investigation into OpenSea, the leading NFT marketplace. This decision concludes months of uncertainty regarding the regulatory status of NFTs and their classification under US securities laws. SEC Decision Signals A Shift On February 21, 2025, Devin Finzer, the CEO and co-founder of OpenSea, said the SEC will not take any enforcement action against the firm. This comes following the August 2024 Wells Notice to OpenSea issued by the SEC, which indicated the possibility of legal action on alleged unregistered securities offenses. The outcome of this case suggests a possible shift in the way authorities handle NFTs, therefore affecting the whole scene of digital assets. For the industry, this outcome has been seen as a major turning point. Though they are in rivalry with OpenSea, Chris Akhavan, the Chief Business Officer of Magic Eden,...
Post a Comment
Read more