Strategy plans $500M preferred stock sale to fund Bitcoin buys – Details

• Technique eyes $500M increase from inventory gross sales for BTC acquisition. 
• The agency’s replace elicited blended views from the crypto neighborhood. 

On the 18th of March, Michael Saylor, founding father of Technique (previously MicroStrategy), introduced a plan to promote $500M value of recent ‘perpetual most popular inventory’ (STRF) for Bitcoin [BTC] buys.

Lately, the agency had issued one other most popular inventory ‘STRK’ for related BTC goals. 

This was a part of the agency’s aim to boost $21B via inventory issuance and one other $21B via debt (convertible notes) for BTC buys. 

Combined views on Technique’s plans

Clarifying the distinction between Technique’s new class of inventory issuance, Bitwise’s Head of Alpha, Jeff Park, said, 

“You should purchase STRK right now for a 9.4% yield with upside convertibility or STRF for a ten% yield with just about no redemption function.” 

Merely put, STRK may very well be swapped for MSTR, however STRF doesn’t have such a function and carries extra threat. 

Nonetheless, some crypto neighborhood members considered Technique’s ‘excessive leverage’ as a threat issue for the complete BTC market. One pseudonymous market analyst, Wazz Crypto, stated, 

“This id*ot is making Bitcoin uninvestable at this level. Can it even be digital gold anymore if it’s tied to the solvency of a single firm?”

One other consumer, Simon Dixon, termed it a ‘next-level threat’ that would require a bailout if it goes below. 

“Technique’s announcement of a perpetual 10% dividend paid in {dollars}—regardless of missing enough greenback income & working with a Bitcoin-based steadiness sheet—is next-level threat.”

Nonetheless, Bitmex Analysis clarified that the agency may keep away from paying MSTR and STRF holders dividends. 

“Appears $MSTR can keep away from paying these 10% to 18% dividends “for any motive.” The possible consequence right here is class A $MSTR shareholders by no means ever get a dividend cost.”

Supply: X

For his half, long-term BTC critic Peter Schiff termed the brand new inventory issuance ‘ridiculous’ and added, 

“The one factor preserving it (BTC) from deflating fully is the Trump administration’s assist. As soon as that goes, it’s throughout for Bitcoin and $MSTR.” 

In comparison with final quarter, the agency’s BTC shopping for tempo has slowed in 2025. On sixteenth March, it purchased 130 BTC, rising its stash to 499,226 cash – A 2.3% management of whole BTC provide. 

Supply: CryptoQuant

As of this writing, MSTR was valued at $282, down 48% from its current highs of $543, following current BTC losses. Prior to now two weeks, it fluctuated between $230 and $300 as BTC remained under $90K over the identical interval. 

On a year-to-date (YTD) efficiency, MSTR held the risk-off sentiment higher and was down solely 5% in comparison with BTC’s 11% decline. 

Supply: MSTR vs BTC, TradingView

Final week, MSTR posted a 26% acquire as BTC retested $85K, suggesting the inventory may publish a robust restoration if the cryptocurrency reversed its losses.