Strategy Considers $21 Billion Preferred Stock Offering Amid Bitcoin Dip

Strategy (formerly MicroStrategy) announced on Monday its consideration of offering $21 billion in preferred stock to potentially increase its Bitcoin holdings. This announcement comes as Bitcoin's price dipped 5.3% to $79,000, a five-month low, amid renewed trade war concerns. Strategy last purchased Bitcoin on February 24, acquiring $1.9 billion worth at an average price of $97,500. The company's shares also fell 12% to $251 in midday trading on Monday. Strategy's market capitalization has decreased relative to its Bitcoin holdings, falling from 3.4x in November to 1.6x, according to MSTR Tracker. The potential offering aligns with Strategy's October announcement to raise $42 billion over three years for Bitcoin purchases.