Strategy—formerly known as MicroStrategy—has initiated another step towards expanding its Bitcoin holdings. The company has submitted an application to the U.S. Securities and Exchange Commission to offer securities valued at approximately $500 million.
The plan involves raising funds through the sale of 5 million shares of its 10% Series A convertible preferred stock, known as Strife. Priced at $100 per share, the capital raised is earmarked primarily for further acquisitions of Bitcoin. According to the filing, the net proceeds will be allocated towards general corporate purposes, with a significant focus on bolstering the company’s digital asset portfolio.
Potential Risks and Corporate Strategy
In its submission, Strategy acknowledges that fluctuations in Bitcoin’s market price could pose risks. The company cautions that such volatility might force it to convert its acquired digital tokens into cash at a loss relative to the funds raised through the offering. This acknowledgement of market risk demonstrates the company’s recognition of the inherent uncertainties within the cryptocurrency market.
Recent Developments
This move follows an earlier announcement in which the company revealed plans to generate substantial capital—reportedly aiming for billions—through the sale of additional series of shares. Furthermore, Strategy recently made headlines by bolstering its Bitcoin portfolio with a fresh purchase, underscoring its long-term commitment to the digital asset. Detailed figures regarding this acquisition were not disclosed in the latest update.
For further details on the filing and ongoing updates, please refer to the official SEC documents available at SEC Archives.
Maxwell Reed is the first editor of Cryptovista360. He loves technology and finance, which led him to crypto. With a background in computer science and journalism, he simplifies digital currency complexities with storytelling and humor. Maxwell began following crypto early, staying updated with blockchain trends. He enjoys coffee, exploring tech, and discussing finance’s future. His motto: “Stay curious and keep learning.” Enjoy the journey with us!