Key Points
- Michael Saylor plans to raise $21B through the sale of STRK preferred stock for Bitcoin purchases and corporate operations.
- Strategy’s unrealized profit from Bitcoin has declined from $20B to $7B due to the Q1 2025 BTC drawdown.
Michael Saylor recently unveiled a daring initiative for Strategy (previously known as MicroStrategy). The plan involves selling $21B worth of preferred STRK stock to fund Bitcoin purchases and corporate operations. Saylor made the announcement in a post on March 10th.
The company, a pioneer in BTC corporate strategy, has been consistently acquiring Bitcoin by issuing stocks and convertible notes. The firm uses its common MSTR and preferred STRK stocks to generate capital for Bitcoin investments.
Strategy’s Bitcoin Plan
As of early March 2025, Strategy possessed 499,096 BTC, valued at $40B at current rates, and controlled 2.3% of the total supply. However, the BTC drawdown in Q1 2025 has reduced Strategy’s unrealized profit by 3x. Despite the decrease in profit, Strategy remains optimistic for the long term.
Peter Schiff, on the other hand, questioned Strategy’s ability to raise such a large sum due to the subdued BTC price movement. Conversely, Jesse Myers, co-founder of OnRamp Bitcoin, suggested that the STRK stock issuance could provide Strategy with an effective way to raise capital from the bond market.
Price Performance
In terms of price performance, MSTR has fallen 56% to the last U.S. election level of $240, a trend seen across most U.S. equities. During the same time, Bitcoin has dropped about 30%, which analysts say is a standard pullback for the cryptocurrency during bull runs.
Bitcoin dipped below $80K, but was above that level ahead of significant U.S. economic data. It remains to be seen whether Bitcoin will reverse its Q1 losses and provide a relief recovery for MSTR.
