Saylor’s Strategy Ramps Up Sales of Preferred in Latest Bitcoin Purchase Michael Saylor’s company, formerly known as MicroStrategy, executed its largest Bitcoin purchase since January by acquiring nearly $1.6 billion worth of the cryptocurrency. The transaction, which occurred between March 9 and March 15, involved the purchase of 22,337 Bitcoin. According to a regulatory filing, approximately $400 million of the funds came from the sale of common stock, while the remaining $1.2 billion was sourced through at-the-market sales of its “Stretch” perpetual preferred shares. These shares, which offer investors an 11.5% annual payout, are structured similarly to bonds that do not have a maturity date. The dividend payments are ultimately funded by the company’s Bitcoin holdings. The purchase marks a significant step in the company’s strategy to leverage Bitcoin as a core asset. The preferred shares, which provide a steady yield, are designed to attract long-term investors by offering predictable returns. This approach aligns with the company’s broader focus on capitalizing on the growth potential of Bitcoin, which has become a central component of its financial strategy. The decision to allocate a substantial portion of the purchase to preferred shares underscores the company’s emphasis on balancing immediate returns with long-term investment goals. The transaction also highlights the evolving role of Bitcoin in corporate finance. By using a mix of equity and preferred shares to fund the purchase, the company is demonstrating a flexible approach to managing its capital structure. This method allows it to maintain liquidity while still investing heavily in Bitcoin, which has been a key driver of its recent financial performance.#bitcoin #microstrategy #michael_saylor #preferred_shares #stretch_perpetual
