Strategy Shares Plunge Following Dual Capital Raise Announcement

Investors in bitcoin-focused firm Strategy faced a sharp selloff on Tuesday after the company unveiled plans for two substantial capital-raising initiatives. The market’s immediate negative response highlights growing concerns about shareholder dilution as CEO Michael Saylor continues his aggressive expansion of the company’s bitcoin holdings.

The scale of Strategy’s Tuesday morning announcement was remarkable. The company revealed plans for a public offering of 3.5 million Series A preferred shares, each priced at €100 and carrying an attractive 10% annual dividend denominated in euros. Simultaneously, Strategy filed documentation that would enable the sale of common stock worth up to $15.85 billion.

Both moves serve the same stated purpose that has become characteristic Read more...