Michael Saylor's back at it again, pulling off the largest crypto-linked equity raise of the year. On Tuesday, he closed a $2.5 billion offering through a new class of perpetual preferred stock, STRC. This little move isn’t just for the crypto geeks; it offers a 9% floating monthly dividend, which sounds pretty sweet, right?
So what’s Saylor doing with all this cash? Buying more Bitcoin, of course! He scooped up 21,021 BTC at an average price of $117,256 each. Now, Strategy’s total Bitcoin stash sits at a mind-blowing 628,791 BTC, which, at current prices, is worth more than $74 billion. Yeah, you read that right, billion.
STRC: The New Retail Investment Product for Bitcoin Exposure
But here’s where it gets even juicier: Once STRC starts trading on the Nasdaq Wednesday, it will be the first “U.S. exchange-listed perpetual preferred security issued by a Bitcoin treasury company to pay monthly dividends.” That’s a pretty big flex, don’t you think?
This STRC sale is massive for Strategy; it blows their $800 million convertible note offering from last year out of the water. And let’s not forget the STRF launch earlier this year, which Saylor dubbed the company’s “crown jewel” (well, we’ll see if STRC takes the crown). STRF was backed by a $2.1 billion at-the-market program, but STRC is a bit different.
STRC is tailored for retail income investors. Think floating monthly payouts, no maturity date, and, importantly, no direct exposure to the volatility of the spot market. Basically, it’s like getting Bitcoin exposure without having to sweat over daily price swings. Vincent Liu, the CIO of Kronos Research, even pointed out that this kind of offering is a win-win for deepening Bitcoin liquidity without overloading the order book. Fancy, right?
So, what does this all mean? Saylor’s definitely making moves, and with STRC on the Nasdaq, it seems like he’s got the retail crowd in his sights now. Whether you’re an institutional player or a regular retail investor, this is a strategy you’ll want to keep an eye on. Let’s see if this fresh offering can stack up to the hype!
Anastasiia G
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