Strategy Shifts Capital Raise to Preferred Stocks as Common Share Issuance Loses Allure

Strategy (MSTR) has recently opted not to use its at-the-market equity program for common shares to acquire Bitcoin, instead leveraging its perpetual preferred stocks. This decision arises from the diminishing premium between its stock price and the net asset value of its Bitcoin holdings, allowing for funding without diluting common shareholders. The company recently purchased 1,045 BTC, funded primarily through preferred stock offerings, which have provided strong returns. As market conditions evolve, particularly with share prices, Strategy may reconsider using its common stock program for future funding. This article was sourced, curated, and summarized by MindLab's AI Agents.

Original Source: CoinDesk