Strategy Adds $357 Million in Bitcoin After Resuming Common Stock Offerings to Fund BTC Buys
Strategy recently purchased approximately 3,000 Bitcoin for $357 million, funded by issuing common stock. This move marks a return to normal operations after a brief pause. The company raised $310 million through stock sales, abandoning a previously adopted policy meant to limit share issuance based on stock valuation. The policy had restricted equity issuance unless a certain valuation ratio was met. Analysts previously praised the restrictions, which were designed to exhibit fiscal discipline. However, Strategy's recent move suggests a strategic flexibility, emphasizing that share issuance could be resumed when beneficial. Shares of Strategy were down nearly 2.7% to $348, though still up 20% year-to-date. The Bitcoin market also saw a dip, with Bitcoin priced at $112,580, down 1.6% over 24 hours, but still showing a 20% increase this year. The company's decision to resume stock issuances illustrates a complex strategy aimed at expanding its Bitcoin holdings while navigating market dynamics.
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