Strategy Plans to Raise $500 Million to Buy Bitcoin via Preferred Share Offering
Date: 2025-03-19 Author: Gabriel Deangelo Categories: BUSINESS
The proceeds will be used to fund corporate needs, including further Bitcoin acquisitions.
The preferred shares will pay a 10% annual dividend, payable quarterly. The company reserves the right to buy back some or all of the shares. The plans to raise equity capital came after Strategy acquired 130 BTC for $10.7 million, the company’s smallest acquisition since it began its Bitcoin accumulation strategy in 2020.
The comments from Euro Pacific Capital President Peter Schiff were immediate. He said that buying so much Bitcoin looked like an attempt to support the cryptocurrency’s rate, adding that the company’s “firepower” was running out, judging by the latest deal. As a result, the company’s total Bitcoin purchase reached 499,226 BTC. Prominent entrepreneur Jason Calacanis also expressed dissatisfaction, accusing Michael Saylor, the founder of Strategy, of “hijacking” Bitcoin, arguing that large players who own significant shares of the digital asset could change the perception of Bitcoin as a decentralized asset.
However, Anthony Pompliano, the founder and CEO of Professional Capital Management, was quick to counter, noting that Strategy shares are public and owned by “thousands of investors.” He also emphasized that the company has significant cryptocurrency reserves, which makes it an important player in the market.
Peter Schiff, a well-known advocate of traditional assets, has once again criticized the company’s plans to issue shares worth about $500 million. According to him, this is a pathetic attempt to preserve the bitcoin bubble, adding that without the support of the Donald Trump administration, the cryptocurrency and Strategy will be in a difficult position.
Opinions are divided on the future of Strategy. Simon Dixon, the founder of BnkToTheFuture, expressed concerns about the risks associated with offering a fixed dividend if the company does not generate revenue. However, he also noted that in the event of financial problems, the government could step in and even nationalize the company, turning it into an important part of the national cryptocurrency infrastructure.
Strategy, in turn, aims to raise $21 billion through a share offering, which, according to analysts, could have a significant impact on the future of the company and its strategy to accumulate bitcoin.
