Strategy Plans $21 Billion Preferred Stock Offering to Boost Bitcoin Holdings

Strategy, led by Michael Saylor, announced plans to issue up to $21 billion in preferred stock to increase its Bitcoin (BTC) holdings. The offering, consisting of 8% Series A perpetual-strike preferred shares convertible into Class A common stock, will be executed through an "at the market offering" program. This follows a previous successful effort in January, where Strategy raised $563 million by issuing preferred shares at $80 each. As of March 9, Strategy holds approximately 499,096 Bitcoin, valued at around $42 billion, but made no purchases between March 3 and March 9. Despite a recent 15% drop in Strategy's shares to $238 on Monday and an 18% monthly drop in Bitcoin price to $79,000, the company's shares have surged over 2,200% since Saylor began investing in Bitcoin in 2020.