MicroStrategy to Offer $2 Billion in STRC to Fund Bitcoin Buys
Strategy plans to massively expand its newest STRC offerings from $500 million to $2 billion, aiming to buy more Bitcoin. Several investment banks like Morgan Stanley are reportedly interested in buying.
The company aims to hold 1 million BTC, and new stock sales are the best way to achieve this goal. Bitcoin recently hit an all-time high, but MicroStrategy does not plan to slow down its purchases.
Strategy’s Newest Bitcoin Gamble
Strategy has a long record of being one of the largest Bitcoin holders, even inspiring dozens of firms worldwide to follow in its footsteps.
Yesterday, the firm unveiled its plans to turbocharge acquisitions, aiming to hold 1 million BTC. Today, a new Bloomberg report shows Strategy’s newest effort to achieve this goal: increasing its latest stock sale from $500 million to $2 billion.
To be clear, Strategy has made plenty of Bitcoin purchases in recent days, leading global BTC acquisition despite hordes of competing firms. Still, this report is somewhat unorthodox for a few reasons.
The firm’s latest press release deals with the initial $500 million offering, and Strategy published it days ago. Since then, neither the company nor Michael Saylor has commented on this $2 billion upgrade, although both parties have been active on social media.
Strategy plans to sell shares of its new Stretch (STRC) stock at $90 each, which an anonymous spokesperson called a discounted value.
As always, Strategy intends to use these sales to buy more Bitcoin. Several prominent firms, such as Morgan Stanley, Barclays PLC, and TD Securities, are in talks to buy these offerings.
A House of Cards?
Currently, Strategy holds 607,770 BTC, which is worth around $72.4 billion at Bitcoin’s current prices. As of now, the token is doing quite well, reaching an all-time high earlier this month.
Nonetheless, growth seems to be slowing, and a few warning signs may point to possible stagnation.
If a sudden dip happens, many overleveraged firms may be forced to offload their BTC. Strategy, as the leading corporate Bitcoin treasury, could be an especially potent market mover.
According to Bloomberg, STRC is one of at least five different stock offerings that Strategy is currently offering. All of them are predicated on long-term BTC growth.
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