The largest Bitcoin (BTC) bull from Wall Street, Michael Saylor, continues unabated. In a recent X post he announces that the investment plans of his company have been scaled up. There is now considerably more capital available, all intended to purchase extra bitcoin.
More money, more bitcoin
Initially, Strategy wanted to spend 250 million dollars in shares, but that amount has now quadrupled. The funds are collected via the issue of new STRD shares, a so-called ‘perpetual preference’ variant.
These shares give investors priority for dividend payments and with liquidation, and have a fixed annual return of ten percent, if approved by the board. The ‘perpetual’ character means that there is no fixed duration, in contrast to traditional preference shares. So they remain infinitely in circulation, similar to ordinary shares, but with extra privileges.
With an investment of 1 billion dollars, Strategy can theoretically add around 9,615 BTC to its reserves, based on a Bitcoin rate of 104,000 dollars. This would make the total ownership of the company above the 590,000 BTC, with an estimated value of $ 63 billion.
Strategy’s bitcoin addiction has risks
It may be clear how Saylor stands in the competition: at all costs, the company must accumulate more bitcoin. Yet not everyone is undivided about this strategy. Critics warn against the growing dependence on BTC that is largely acquired with external capital. If the value of the digital currency falls fast in the future, the debts and financial obligations will continue to exist. In theory that could lead to serious problems.
Source: https://newsbit.nl/strategy-haalt-bijna-1-miljard-op-voor-massale-bitcoin-aankoop/
