Michael Saylor’s Approach Guarantees $2 Billion to Power Bitcoin Acquisition
Michael Saylor has returned to the BTC table, and this time he has a larger plate. Strategy Inc. has increased its preferred equity fundraising from $500 million to $2 billion, significantly ramping up (or should we say quadrupling) its 
BTC ▼-1.69% acquisition initiative.
The Series A Perpetual Stretch Preferred Shares are expected to be priced at $90 with a 9% dividend, as reported by Bloomberg.
“The firm is gearing up to set the share price at $90 each, the lower end of a promoted range,” – Unnamed source, Bloomberg
This strategy indicates not only ongoing demand for Bitcoin-related exposure but also Saylor’s steadfast belief that Bitcoin should be integral to contemporary treasury strategies.
Michael Saylor: ‘Why This Matters for BTC and Institutional Investors’
Strategy currently possesses 607,770 BTC, estimated at around $72.4 billion, which accounts for more than 3% of Bitcoin’s total supply. The newly raised $2 billion in preferred equity could elevate that figure significantly.
The offering is spearheaded by Morgan Stanley, Barclays, Moelis & Co., and TD Securities, featuring 5 million shares ranking above most of Strategy’s current preferred and common shares, although they are subordinate to its convertible debt and “Strife” preferred class.
Michael Saylor has characterized Strategy’s fundraising approach as a “quadratically reflexive, engineered instrument” that facilitates the acquisition of BTC at favorable prices using capital procured at high valuations.
The concept is straightforward: gather funds through preferred stock or bonds when Strategy’s shares are high, then allocate that capital to acquire BTC, which could further enhance the company’s value. Repeat as necessary. Saylor is quite the character.
BTC Market Reaction and Outlook
At the time of this writing, Bitcoin (BTC) is trading near $115,300, showing a slight decline for the day. Shares of Strategy remained relatively stable during Thursday’s trading session but fell by 0.44% in after-hours trading. Despite the downturn, there remains robust momentum, and institutional sentiment continues to be uptrend.
Whether this strategy will continue to benefit investors hinges primarily on one factor: the value of Bitcoin. In the realm of crypto maximalism, Saylor is poised to become the next Warren Buffett.
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Key Takeaways
- Strategy Inc. has increased its preferred equity raise from $500 million to $2 billion, reinforcing its Bitcoin wager.
- Bitcoin (Bitcoin) hovers around $115,300, experiencing a slight decline for the day. Shares of Strategy were mostly steady during Thursday’s session but dipped 0.44%.
The post Michael Saylor’s Strategy Secures $2 Billion to Fuel BTC Accumulation appeared first on 99Bitcoins.
