The strategy, the world’s largest bitcoin holder, plans to raise approximately one billion dollars by offering shares to finance additional Bitcoin purchases.
The company, led by CEO Michael Sailor, plans to issue 11,764,700 shares by 10.00 % of the favorite series A Perpetual Stride at a general offer price of $ 85 per share.
Strategy estimates that collect about 979.7 million dollars from net revenue after subscription discounts and commissions for the company’s submission expenses, according to an announcement issued on June 6.
The company plans to use nearly one billion dollars for “public companies’ purposes, including Bitcoin and working capital.”
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This quadruple move, the company previously announced an increase of $ 250 million, and provides a new financing path that exceeds its historical use of shared shares and convertible debts.
On the other hand, the permanent favorite stocks of strategy will pay professional investors and institutions unrelated by 10 % of the specified amount.
At the current price of $ 103,800 per Bitcoin (BTC), it will enable one billion dollars in the strategy to get 9,633 BTC, much more than its last purchase of 705 Bitcoin for 75.1 million dollars announced on June 2.
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Bitcoin Strategy Strategy rises to +112 %: VANECK
The Bitcoin premium of the strategy increased to more than 112 % compared to the instant bitcoin prices, according to Vanck.
“We calculate the +112 % installment on the fair value of the MSTR’s BTC and Core Software, driven by future BTC accumulation expectations, organizational benefits, and speculation sites,” said the director of assets in a research report on May 22.
“Every time Microstrategy issues new shares to retailers – Bitcoin -backed stocks with a value of only a small part of the share price – the company prepares the difference and frames as a bitcoin return.”
However, the premium is smaller than the Metaplanet company, which rose to $ 596154 on May 27, which means that the stock campaign pays more than five times to bitcoin via metaplanet shares.
Investors who do not understand the importance of the net value of the assets (NAV) may be “highly driven by Bitcoin” in a position that does not provide an additional crane, according to a 10X report published on May 27.
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