Michael Saylor’s Strategy to Expand Bitcoin Holdings with New Stock Offering
A recent report by Bloomberg claims that Michael Saylor’s company, Strategy, intends to significantly increase its STRC preferred stock offering from US$500 million (approximately AU$759.8 million) to US$2 billion (around AU$3 billion). The primary aim of this increase is to amass more capital for further investments in Bitcoin.
According to informed sources, Strategy’s Series A perpetual shares were valued at US$90 (AU$137) as of Thursday, with a dividend yield of 9%. The underwriting for this offering involves prominent financial institutions, including Morgan Stanley and Barclays.
The announcement of the stock offering has not materially affected the value of Strategy’s common stock, which closed at just under US$415 (AU$630), reflecting a modest increase of 0.55% for the day. However, over the past year, the stock has witnessed an impressive surge of 156%, largely attributed to Bitcoin’s robust performance, which has seen the cryptocurrency’s value rise by around 90% during the same timeframe.
Since adopting Bitcoin as a core strategy in 2020, Strategy has acquired a staggering 607,770 BTC, currently valued at approximately US$72 billion (AU$109 billion), making it the largest corporate Bitcoin holder worldwide.
Increased Corporate Interest in Bitcoin
The success of Strategy has catalysed interest from other corporations in adding Bitcoin to their financial portfolios, spurred by the growing acceptance of Bitcoin spot exchange-traded funds (ETFs) and a more favourable regulatory landscape in the United States.
Data from Bitcointreasuries.net reveals that the top 100 publicly-listed companies globally possess a combined total of 917,612 BTC, with Strategy holding over 66% of this amount. To put this in perspective, the second-largest corporate holder, Bitcoin miner MARA Holdings, has only 50,000 BTC.
Other prominent firms diversifying into Bitcoin include Trump Media Technology Group, which owns 18,430 BTC, and Coinbase, which has 9,267 BTC. Notably, DigitalX is the largest Australian publicly-listed Bitcoin holder, possessing 499 BTC.
Conclusion
Overall, Strategy’s bold manoeuvre to increase its preferred stock offering reflects its commitment to furthering its Bitcoin acquisitions, solidifying its position as a frontrunner in corporate cryptocurrency investments. As more companies consider integrating Bitcoin into their balance sheets, the interest and investment in this digital asset continue to gain momentum.
