- Saylor’s got his eyes set on a $21B capital raise, hawking STRK preferred stock like hotcakes.
- But alas! Strategy’s unrealized profit on the BTC treasure chest has plummeted from a whopping $20B to a mere $7B.
Well now, gather ’round folks, for Michael Saylor has unfurled a plan so audacious it could make a cat laugh! Our dear friend Saylor, the captain of Strategy (formerly known as MicroStrategy), has decided to sell a staggering $21B worth of preferred stock (STRK) to fuel his Bitcoin escapades and keep the corporate wheels turning. In a post on the 10th of March, he proclaimed,
“Strategy announces $21 Billion $STRK At-The-Market program $MSTR.”
This fella is no stranger to the Bitcoin game, having been on a buying spree that would make a raccoon jealous, all thanks to stock issuance and a bit of debt (convertible notes, if you will).
Now, with this stock issuance, the firm is using its common MSTR and preferred STRK stocks to rake in some cash for those shiny Bitcoin investments. If all goes well, they might just snag some BTC at a bargain after a recent dip. Ain’t that a hoot?
As of early March 2025, Strategy is sitting on a mountain of 499,096 BTC, worth a jaw-dropping $40B at current prices, holding a 2.3% slice of the total pie. Talk about a hefty slice of Bitcoin pie!
Saylor’s BTC plan elicits mixed reactions
But hold your horses! The BTC rollercoaster in Q1 2025 has slashed Strategy’s unrealized profit by threefold. Back in February, when BTC was strutting around at $109K, Strategy’s profits were nearly touching the sky at $20B.
Now, as we speak, that profit has shrunk to a paltry $7.2B, yet the firm remains as optimistic as a dog with two tails.
Meanwhile, Peter Schiff, ever the skeptic, has thrown cold water on Saylor’s grand plans, suggesting that raising such a colossal sum might be as likely as finding a needle in a haystack. He quipped,
“I don’t think you will be able to pull this off. Soon $MSTR will be trading at a discount to its Bitcoin holdings. That means selling these shares will produce a negative Bitcoin yield.”
But not to be outdone, Jesse Myers, co-founder of OnRamp Bitcoin, chimed in, claiming that this STRK stock issuance could be the golden ticket for raising capital from the bond market. He said,
“$21B could be just the start for this STRK “ATM program.” Congrats to Saylor and Shirish Jajodia for creating an even more efficient vehicle for converting SoV capital into Bitcoin monetary energy.”
On the price front, MSTR has taken a nosedive, dropping 56% to the last U.S. election level of $240, a trend that seems to be the flavor of the month across most U.S. equities.
During this same time, BTC has taken a tumble of about 30%, which analysts say is just the usual hiccup for cryptocurrencies during bull runs. Ain’t that a surprise?
Meanwhile, BTC has dipped below the $80K mark, but is still holding its head above water ahead of some key U.S. economic data. Whether BTC will bounce back from its Q1 losses and offer a glimmer of hope for MSTR is a tale yet to be told.
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2025-03-11 14:24