Strategy (formerly Micro Strategy) has unveiled plans to collect $ 2.1 billion through the sale of its series A Petual Strife Preferred Stock (STRF).
According to May 22 rackThe shares are issued under an ATth-Market (ATM) program. With this structure, strategy can gradually sell shares, based on favorable market conditions such as trade volume and price.
The funds collected from this offer will be used to feed the Bitcoin acquisitions of the company and other business initiatives.
Strf
According to the prospectusThe company works together with TD Securities, Barclays Capital and the benchmark company to manage the offer. STRF shares are mentioned on the Nasdaq Global Select Market and act at $ 100.65 per unit.
Strategy clarified that this issue will be a supplement to the 8.5 million STRF shares that are already in circulation.
The preferred stock is not convertible in other effects and offers no preventive rights to investors. This means that holders will not be given a priority in future stock offers or benefit from stock conversions.
Swan, a Bitcoin-oriented financial company, described the offer as a “Trojan Horse” that would help to get conservative fixed income capital to Bitcoin on board.
It added:
“STRF pays a return of 10%, is overcollateralized with BTC and is designed to look unspoilt for Tradfi. The goal? Investment grade treatment. While Wall Street Spot ETFs pushes, strategy is an entire Bitcoin credit market building-strf, Strf, Converses and all-yield ETFs all
Strategy Fundraising Efforts
The latest stock sales is part of the wider 42/42 capital story plan of the strategy.
With the latest relocation, the company has three ATM sales programs that are being implemented at the same time, including a MSTR program, which can still yield around $ 18.89 billion.
In the meantime, the company has assigned $ 21.79 billion to Strk and $ 2.1 billion in STRF.
The company currently owns 576,230 BTC, making it the largest company holder of Bitcoin and has no plans to stop collecting the flagship Crypto.
Facts From Saylor Tracker shows that the Bitcoin supply of the company is worth around $ 64 billion, an increase of more than 59% compared to the cost basis of $ 40.2 billion.