Strategy plans $500M stock raise for Bitcoin purchases
Strategy, formerly known as MicroStrategy, announced plans to raise up to $500 million to buy more Bitcoin. The software firm will offer a new type of stock called Strife, with each share priced at $100. This stock will pay a fixed dividend of 10%, available only to institutional investors. The Strife stock differs from an earlier product called Strike, which had a lower dividend of 8%. The company plans to pay the first dividend for Strife in about 100 days. In recent financial activities, Strategy purchased about $10.7 million in Bitcoin, increasing its total holdings of the cryptocurrency to roughly $41.4 billion. Despite a tough market for raising cash, analysts believe Strategy will continue its Bitcoin purchases. On Tuesday, Strategy’s stock price fell by 6.5% to about $275, and it has dropped 5.5% this year, although it has doubled in value over the last six months. Co-founder Michael Saylor spoke at an event in Miami, highlighting concerns about the economy and Bitcoin's price fluctuations. He expressed optimism that when market conditions improve, Bitcoin could see significant gains.