Strategy Gears Up for a Monstrous $4.2B Bitcoin Buy with a Fresh Stock Sale

Holy moly, Bitcoin behemoth Strategy is about to drop a colossal $4.2 billion on Bitcoin, and they're funding it with a new round of stock sales. Get ready, folks!

After hitting the brakes on their buying spree, Michael Saylor's Strategy is revving up for another mind-blowing Bitcoin (BTC) purchase. On Monday, July 7, the Bitcoin investment firm dropped the bombshell: they're launching a $4.2 billion at-the-market stock offering. Buckle up!

They're rolling out a 10.00% Series A Perpetual Stride Preferred Stock, which you can grab on Nasdaq under the ticker STRD. This bad boy pays a 10% dividend, gets priority in liquidations over other stocks, and has no fixed maturity rate. Talk about a sweet deal!

Strategy plans to sell these shares gradually at market price to avoid sending the stock price into a nosedive. The cash from these sales will be pumped into buying more Bitcoin, paying dividends on other preferred shares, and keeping their operations running smoothly. Smart move!

$4.2B Sale Follows Strategy's Brief Bitcoin Break

This mega purchase comes hot on the heels of a short breather in their weekly reporting period from June 30 to July 9. It was the first week since early April that Strategy didn't scoop up any Bitcoin, giving their aggressive BTC accumulation a quick pause.

The last time Strategy raised capital was on June 10 this year with an underwritten public offering. They raked in a cool $979.7 million from investment banks that bought shares upfront and then flipped them to the public. Cha-ching!

So far, Strategy has hoarded a jaw-dropping $64.4 billion worth of Bitcoin, or 597,325 BTC. That's brought them a whopping $22 billion in unrealized profits, considering they bought it all for $42.4 billion. Their stash now accounts for nearly 3% of the total Bitcoin supply, making them the undisputed king of corporate holders.

But hold on, their leveraged Bitcoin buys are raising eyebrows about sustainability, especially if Bitcoin's price takes a nosedive. It's a high-stakes game, and all eyes are on Strategy to see how they play their next move.