Crypto Fund Doubles Down With $2.1B Bet Right After Bitcoin Smashes ATH
Just as Bitcoin punches through its previous price ceiling, a major player drops a $2.1 billion vote of confidence—because nothing screams ’rational market’ like doubling down at the peak.
Wall Street’s playbook? Copy-paste the crypto crowd’s FOMO. The timing—flawless or reckless—depends on whether you’re holding bags or dumping them.
One thing’s certain: when the suits start playing with digital matches, someone’s bound to get burned.
Strategy to sell $2.1 billion STRF preferred stock to expand Bitcoin holdings
Business intelligence firm Strategy revealed its intention to offer shares of up to 10% of its perpetual strife preferred stock for sale. The offering, which comes at $0.001 per share, will see the company raise $2.1 billion to upsize its bitcoin holding and fund company operations.
"The perpetual strife preferred stock, subject to the terms and conditions of the sales agreement, may be sold by agents by any method that is deemed an ’at the market offering,’" Strategy stated in its press release.
Strategy has expanded its Bitcoin holdings aggressively in the past weeks, revealing on Monday that it acquired an additional 7,390 BTC for $764.9 million, at an average price of $103,498 per Bitcoin.
The company currently holds 576,230 BTC — 2.74% of Bitcoin’s total supply — acquired at an average price of $40 billion. Based on current market prices, the position is valued at approximately $64 billion, representing an unrealized profit of around $24 billion.
The company’s Bitcoin strategy continues to serve as a template for other firms looking to add Bitcoin to their treasuries. Likewise, its stock is commonly viewed by governments and entities as a proxy for gaining exposure to Bitcoin’s price.
Bitcoin’s surge over the past month was partly fueled by consistent buying pressure from Strategy and companies leveraging its playbook. The top crypto hit an all-time high of $111,800 on Wednesday night after rising nearly 50% from a low of $74,500 on April 7.
Bitcoin trades NEAR $111,400, up 1.7% in the past 24 hours and slightly down from its new all-time high of $111,800 at publication time.
