02.08.2025 03:00

StrategyB, the successor to MicroStrategy, is making a significant move in the cryptocurrency market. The firm, spearheaded by Michael Saylor, aims to bolster its Bitcoin holdings by raising a staggering $4.2 billion through a preferred stock offering. This ambitious undertaking underscores StrategyB's unwavering commitment to Bitcoin as a core asset.

This capital injection will fuel further Bitcoin acquisitions, significantly expanding the company's already substantial portfolio. With the addition of this funding, StrategyB's Bitcoin holdings will surpass 628,800 BTC, representing approximately 3% of the total circulating supply. This substantial increase showcases a bold strategy for accumulating the leading cryptocurrency.

The funding mechanism involves issuing Variable Rate Series A Perpetual Stretch Preferred Stock, traded under the ticker "STRC" on the Nasdaq Global Select Market. Each share carries a $100 liquidation preference, while the current market price sits at $94.50. A Sales Agreement, facilitating the stock sale, has been signed with five major financial institutions: TD Securities (USA) LLC, Barclays Capital Inc., The Benchmark Company, LLC, Clear Street LLC, and Morgan Stanley & Co. LLC. These firms will act as agents, enabling flexible sales methods, including at-the-market offerings, block trades, and negotiated transactions.

These agents, not obligated to sell a predetermined number of shares, will operate under standard market conditions agreed upon with StrategyB. Their compensation, capped at 2% of the gross proceeds, aligns with typical underwriting commission structures within securities regulations. This substantial capital raise, leveraging established financial channels, reflects StrategyB's strategic plan to become a major player in the Bitcoin space. The aggressive pursuit of Bitcoin highlights a bullish outlook on the cryptocurrency's future.