Strategy executive chairman Michael Saylor is unveiling an ambitious plan to bolster the company’s already boisterous Bitcoin (BTC) holdings.
In a new post to the social media platform X, Saylor says that Strategy, formerly MicroStrategy, is selling $21 billion in preferred STRK stock to snatch up more coins.
The announcement comes amid a turbulent market, with Bitcoin prices down 17% in the last month alongside a significant stock market correction.
According to the announcement, the funds will be allocated for general corporate purposes, including acquiring additional Bitcoin. Strategy, already the largest public corporate holder of Bitcoin, currently owns 499,096 BTC, valued at approximately $41.2 billion.
Strategy says the stock sale, part of Strategy’s “21/21 plan,” aims to raise capital through the issuance of 8% Series A Perpetual Strike Preferred Stock.
The issuance of perpetual preferred stock will allow Strategy to raise significant capital without committing to a repayment timeline, as these shares lack a maturity date.
While speaking at the Conservative Political Action Conference (CPAC) this week, the Strategy executive chairman argued that BTC was digital property and an important tool for the US to “own cyberspace” in the future.
“Right now you can literally buy it for a song and dance. That’s the opportunity.
The risk is that you wouldn’t want the Saudis to buy it first, or the Russians or the Chinese or the Europeans. And there’s only room for one nation-state to buy up 20% of the network, and obviously, I think it should be the United States. I think it will be the United States. It’s a way for us to enrich ourselves and emerge as a creditor nation in a matter of a decade. It’s also a way for us to ensure that we’re the economic leaders in cyberspace.”
Read Strategy’s U.S. Securities and Exchange Commission (SEC) filing here.
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