Michael Saylor’s Strategy Plans Stock IPO to Fund Bitcoin Buys, Operations

Strategy, earlier Microstrategy, announced They plan on Monday to collect fresh capital by selling shares of preferred shares, with revenues intended to buy bitcoin and other operational costs.

Acting as a Bitcoin Treasury company, the strategy requires $ 250 million with a starting public offer of 2.5 million shares of its “10% A Conpetual Stride Stride Preferred section” (STRD).

The shares will be listed on NASDAQ, with each share at the beginning of $ 100, and offers investors 10% of the annual dividend yield, according to a recent application.

“We intend to use a net income from this offer for general corporate purposes, including the acquisition of bitcoin and for craft capital,” the strategy wrote on Monday Preliminary prospectussupplementing earlier application on January 27.

The STD offer represents the third preferred issue of shares this year after its strike (Strk) and Strif (stf) Offers.

In March, the company increased the size of these bids from 500 to $ 723 million In a few days of their announcement. The new STRD shares have 10% annual, non-musical cash dividend, a quarterly payment, starting on September 30.

Preferred stock, such as Stright Strd, Strf and Strk Offers, refers to the hybrid “share in the company, which is sold on stock exchanges such as usual shares”, Fidelity to Fidelity Property Management Company explains.

Combines the features of bonds with shares ownership, providing the owners a priority over joint shareholders for dividend payment and property requirements, but usually without voting rights.

However, these dividends are not guaranteed or cumulative, so if they have not been declared in a certain quarter, investors will not be paid or compensated for missed payment later.

The strategy has accumulated so far Bitcoin worth $ 61 billioncurrently estimated at approximately $ 106,000, according to data from Coingecko.

The strategy considers her bitcoin stock “long -term stake” with the expectation that she will accumulate more.

There is no “special goal for the amount of bitcoin we want to hold,” the strategy wrote in its prospectus, adding that it would continue to “monitor market conditions” so that it would know if it should add more bitcoin or participate in more funding.

However, the strategy warns that a sudden decline in the market value of Bitcoin can harm its ability to fulfill the financial obligations, stating the potential to “significant reduction” in its proportions have harmful effects.

The company also notes that even an unrealized gain on its bitcoin could cause “to” become subject to corporate alternative minimum tax “, responsibility in accordance with Law on Reduction of Inflation 2022.

Edited Sebastian Sinclair