Strategy Ups ‘Strife’ Offering to $723 Million to Buy More Bitcoin

Strategy, formerly known as MicroStrategy, upsized its recently announced Strife perpetual stock offering to $723 million, after having initially priced it at $500 million when it was announced on Tuesday.

Dubbed Strife, the company’s latest offering pays a fixed rate of 10% while featuring a public offering price of $85 per share, the company said in a press release.

The total offering translates to 8.5 million shares of Strategy’s so-called “preferred strife perpetual stock.”

The company expects its sale of preferred stock to settle on March 25. Of course, the Tysons Corner, Virginia-based firm said it plans to use $711 million in proceeds to purchase more Bitcoin—padding its stash of 499,226 BTC currently valued at around $41.4 billion.

Instead of being able to convert Strife into common shares, as several of the company’s past offerings allow, the product is set to receive quarterly dividends solely in cash.

Dividend payments would begin in June. That means Strategy would be on the hook to pay Strife investors as much as $71 million in roughly 100 days.

However, based on Strife’s terms, the company is also able to delay dividend payments. If that happens, those dividends can be compounded per quarter missed by up to 18%, Strategy said.

The 10% fixed rate is based on the shares’ stated amount of $100, as reflected in the company’s initial announcement for Strife on Tuesday, the company added.

Strategy purchased billions of dollars of Bitcoin last year by selling stock and convertible debt, which pays 0% interest. Analysts say that as Bitcoin’s price has fallen, it has become notably more difficult for the company to raise capital as cheaply to buy the asset.

Strategy’s stock price dropped on Friday, showing a 2.5% decline to $295 not long after the opening bell, according to Nasdaq. The company’s stock price has fallen around 2% over the past month, but is still changing hands for 84% more than it did a year ago.

Edited by Stacy Elliott.