by Reza Ali
Prominent Bitcoin investor Strategy takes a major step by offering 5 million shares of Series A Perpetual Strife Preferred Stock to increase its Bitcoin holdings.
The company plans to invest selling funds into Bitcoin purchases and will reserve the rest for standard operating expenses. Strategy stated that this offering depends on ongoing market performance and other vital circumstances.
The company states that investors of newly issued stock will earn 10% annual cumulative dividends and will receive quarterly payments starting June 30, 2025. Under certain market conditions Strategy can buy back the issued stock when the number of shares drops to 25% of original distribution level.
Bitcoin Bull Run Ends? Strategy Lowers BTC Purchases
Following its smallest purchase ever Strategy announced its new Bitcoin purchase. The company purchased 130 Bitcoin with $10.7 million cash on March 17 at a cost of $82,981 per coin. After buying Bitcoin last August Strategy purchased its smallest amount since then.
Before making its recent Bitcoin purchase in March 2024 Strategy bought its smallest amount in August 2024 at 169 units. Bitcoin acquisition efforts declined because market participants mostly believe that Bitcoin’s recent bull run is over. In a March 18 statement CryptoQuant founder and CEO Ki Young Ju predicted a market trend of falling or stable Bitcoin prices over the next half year.
Since beginning its Bitcoin investment program Strategy and its units have purchased 499226 BTC paying $33.1 billion. The total price for each BTC purchase including transaction costs amounts to $66,360.
Strategy Increases Bitcoin Holdings Amid Market Uncertainty
The company will reach 500,000 BTC when it buys 774 more bitcoins worth about $64 million. With this milestone Strategy moves ahead as the largest owner of Bitcoin by any corporate organization worldwide.
Despite unpredictable market movements Strategy continues to earn high profits from its Bitcoin assets. The company grow its Bitcoin investments by $8 billion since purchase while the worth of all its holdings remains at $41.1 billion.
By increasing Bitcoin holdings while bringing more stock to market Strategy shows its firm trust in Bitcoin as an investment for years to come against analyst discussions about its future.
Strategy stays committed to its Bitcoin buying strategy as it increases its holdings even when market conditions remain unstable. By offering new stocks the company wants to increase its BTC holdings above 500,000. The crypto market sees negative forecasters yet Strategy keeps buying Bitcoin because they believe it will remain a crucial financial resource.
#blockchain #crypto, #decentralized, #distributed, #ledger
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