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Strategy Announces $4.2 Billion STRC At-The-Market Program

1. Strategy plans to raise $4.2 billion via preferred stock issuance. 2. Sales will occur disciplinedly, potentially influencing investor sentiment.

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FAQ

Why Bearish?

Issuing a large volume of preferred stock may dilute existing shareholder value, impacting MSTR negatively. Historical instances of stock dilution from similar actions often lead to price declines in the short term.

How important is it?

The announcement could lead to short-term volatility, affecting MSTR's price due to concerns over dilution and future performance expectations.

Why Short Term?

The planned stock issuance may create immediate downward pressure on MSTR's share price, as investors react quickly to potential dilution.

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TYSONS CORNER, Va.--(BUSINESS WIRE)--Strategy™ (Nasdaq: MSTR; STRK; STRF; STRD; STRC) today announced that it has entered into a sales agreement pursuant to which Strategy may issue and sell shares of its Variable Rate Series A Perpetual Stretch Preferred Stock, $0.001 par value per share (the “STRC Stock”), having an aggregate offering price of up to $4.2 billion (the “ATM Program”). Strategy expects to make sales of STRC Stock pursuant to the ATM Program in a disciplined manner over an extend.

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