Michael Saylor continues to strengthen his company’s presence in the Bitcoin market with a new strategic initiative: the company has announced the intention to issue 5 million shares of its Series A Perpetual Strife Preferred Stock.
The proceeds will be allocated to general objectives, including the acquisition of Bitcoin (BTC). However, the operation will depend on market conditions and other external factors.
The latest Bitcoin purchase by Michael Saylor and the strategy for the stocks
The new shares issued by Strategy provide for cumulative dividends of 10% annually. Shareholders will receive the dividends on a quarterly basis, starting from June 30, 2025.
An additional clause provides that the company may repurchase all outstanding shares if the total number falls below 25% of the total issued.
This measure would allow Strategy to maintain control over the capital structure and offer greater stability to investors.
The announcement of the stock issuance comes right after the company’s smallest purchase of Bitcoin.
On March 17, 2024, Strategy purchased 130 BTC for a total value of 10.7 million dollars. The average price paid for each Bitcoin was approximately 82,981 dollars.
This represents the smallest purchase since the beginning of the company’s entry into the crypto market in August 2020.
Previously, the all-time low for the company’s acquisitions was recorded in August 2024, when 169 BTC were purchased.
The reduced volume of the latest purchase occurs at a time when several experts are questioning the sustainability of the bull cycle of cryptocurrencies.
The recent operation takes place in a context of increasing speculations about the end of the Bitcoin bull cycle.
On March 18, 2024, Ki Young Ju, CEO and founder of CryptoQuant, stated that the market might have entered a phase of stagnation or bear for the next 6-12 months.
This forecast could lead investors to reassess their strategies, paying closer attention to the future movements of the price of Bitcoin and their impact on companies with large holdings in cryptocurrencies.
The current Bitcoin holdings of Strategy
Since the beginning of its acquisitions in BTC, Strategy and its subsidiaries have accumulated 499,226 Bitcoin, with a total outlay of 33.1 billion dollars. The average purchase price for each BTC was 66,360 dollars, including expenses and fees.
If the company were to purchase another 774 BTC at an estimated cost of 64 million dollars, the total of its Bitcoin reserves would reach the historic threshold of 500,000 BTC.
This would represent 2.38% of the entire global supply of Bitcoin, consolidating its position as the largest company holding BTC globally.
Despite the recent variations in the price of Bitcoin, Strategy is still in consistent profit. Currently, its reserves in BTC have an estimated value of 41.1 billion dollars, ensuring a gain of over 8 billion dollars compared to the initial purchase price.
This continuous accumulation strategy demonstrates the company’s firm belief in the long-term potential of Bitcoin as a store of value, despite the periods of interruption in bull cycles and the forecasts of a possible bear market in the coming months.
