Strategy, formerly known as MicroStrategy, has resumed its Bitcoin buy after weeks of not acquiring the leading cryptocurrency. The company has recently announced a massive $21 billion at-the-market (ATM) stock offering. Strategy could set aside most of the proceeds to buy more Bitcoins as usual. This news comes as the digital market struggles to make a rebound. Strategy Takes A Bold Move for Bitcoin Purchases On Monday, Strategy announced a massive $21 billion at-the-market (ATM) offering of its Series A preferred stock. The primary goal of this move is to acquire additional Bitcoin, reinforcing the company’s commitment to the cryptocurrency. However, this ambitious approach comes at a price. The company funds this purchase through a preferred stock sale, which means raising money from investors in exchange for future payouts. If the Nasdaq-listed company fully commits to this plan, it could lead to annual dividend payments of around $1.68 billion. The company will likely have to raise more capital through stock sales or use profits from its business operations to cover these payments. Many are skeptical about this move, questioning how long Strategy can continue using new stock offerings to buy more Bitcoin. Strategy Remains Largest Corporate Bitcoin Holder The Virginia-based software intelligence firm is a prominent player in the crypto market. Last month, it bought 20,356 BTC, valued at about $1.99 billion , at an average of $97,514 per BTC. Strategy is already the most significant company holding Bitcoin, with nearly 500,000 BTC, worth about $42 billion today. With this new plan, the company wants to buy even more. Market Reaction: Investor Concerns and Stock Performance Strategy’s latest Bitcoin buy-up plan does not entirely convince investors. Some investors worry that issuing more stock could dilute shares, making existing ones less valuable. The company’s stock (MSTR) dropped by more than 5% in premarket trading and is down about 50% from its record high in late November. The crypto market is facing challenges, adding to investors’ skepticism. According to CoinMarketCap data, Bitcoin’s price has dropped to $79,610, falling nearly 5% in the last 24 hours. This happened after the White House crypto summit on March 7. Despite the market decline, Strategy’s Chairman, Michael Saylor, is still confident in Bitcoin and continues to invest in it. However, whether this plan will bring big profits or cause financial trouble will depend on Bitcoin’s performance in the coming months. The post Strategy To Raise $21B in Stock Offering to Buy More Bitcoin appeared first on TheCoinrise.com .
