During the sharp decline of Bitcoin, Strategy (MSTR.US) boosts stablecoin confidence: issuing $2.1 billion in preferred shares to buy coins.

In the midst of continuous Bitcoin price plunges, Michael Saylor, CEO of Strategy company (MSTR.US), recently announced plans to issue up to $2.1 billion in preferred stock, with the funds raised to be used for purchasing more Bitcoin and other general corporate purposes. The technology company, which has shifted from an enterprise SaaS software company to focusing on high-leverage Bitcoin investment tools, stated in a press release that 8% Series A perpetual preferred stock (convertible into Class A common stock) will be sold through a "market sale plan". Known as the "big holder of Bitcoin" and the "Bitcoin shadow stock", Strategy (formerly known as MicroStrategy) has repeatedly chosen to buy Bitcoin decisively during periods of price drops, informing global crypto enthusiasts that Strategy aims to stabilize the trend of Bitcoin prices and has long-term confidence in holding Bitcoin. Co-founder Michael Saylor made the decision four years ago to lead this small enterprise software manufacturer that had been on the brink of bankruptcy for years onto a different path - betting on the rise in Bitcoin value. Under his leadership, MicroStrategy has accumulated over $40 billion in Bitcoin value over the past four years. Indeed, Saylor's bet paid off, as Bitcoin rose from around $10,000 to $100,000 over the four-year period, increasing tenfold. Dubbed by some financial pundits as the "most successful investment bank in human financial history", Strategy has managed to survive on the brink of bankruptcy, and with the enthusiastic support of investors due to its large Bitcoin holdings, the company's total market value now exceeds $70 billion. The company's current market value far exceeds the value of the Bitcoin it holds, having experienced a "rocketing" stock price as a result of holding a large amount of Bitcoin during the 2024 Bitcoin bull market. Since late October, the technology company controlled by co-founder and chairman Saylor has been buying Bitcoin at low prices. However, a filing submitted to the US Securities and Exchange Commission (SEC) by Strategy on Monday showed that the company did not purchase any Bitcoin from March 3 to March 9. The technology company, headquartered in Tyson's Corner, Virginia, currently holds around 499,096 Bitcoins, valued at approximately $42 billion, making it the largest non-exchange type company in terms of holdings. The announcement of the above comes as US President Trump signed an executive order last Thursday to create a US strategic Bitcoin reserve and other digital token reserves, with funding coming from seized crypto assets as per US legal procedures. Strategy co-founder and chairman Saylor, as a representative of the crypto industry, attended a roundtable meeting held last Friday at the White House regarding the strategic reserve plan. The executive order authorizes the US Department of the Treasury and the Department of Commerce to develop a "budget-neutral strategy" to purchase more Bitcoin reserves without increasing the burden on taxpayers. However, the US government will not acquire additional cryptocurrency reserves beyond those obtained through asset seizure processes, meaning that, apart from assets obtained through asset seizure procedures, the government will not purchase additional assets for the reserve. Some cryptocurrency analysts believe that these executive orders regarding cryptocurrencies indicate that the order is more about "storage" of cryptocurrencies rather than "reserves". "Reserves" implies that the US government will actively purchase cryptocurrencies, while "storage" means holding only cryptocurrencies obtained through criminal or civil asset seizure processes, and not acquiring additional assets. Since Saylor began investing the company's cash reserves in Bitcoin to hedge against US inflation in 2020, Strategy's stock price has skyrocketed by over 2,200%. During the same period, Bitcoin's price has risen by over 600%. The company has since turned to using equity and stock sales to fund Bitcoin purchases. In October, Strategy announced its plan to raise $42 billion through market stock issuances and fixed-income securities by 2027 to purchase Bitcoin. Hedge funds from around the world have been strongly pushing for the public market issuance of convertible bonds, using complex trading strategies of buying bonds and shorting stocks to bet on volatility of target stocks, in order to obtain excess returns based on convertible bonds and stocks. The price of Bitcoin and other cryptocurrencies continues to remain weak on Monday, following a downtrend since February, mainly due to the escalating global trade war initiated by the Trump administration and the uncertainty of further interest rate cuts by the Federal Reserve, offsetting the positive impact of the executive orders on cryptocurrencies and the statement from the US Office of Comptroller of the Currency (OCC) last Friday clarifying that National Bankshares, Inc. can participate in some cryptocurrency-related business. According to CoinGecko's data, Bitcoin has dropped by 25% from its historic high of $109,241, and the total market capitalization of the entire cryptocurrency market has shrunk by over $1 trillion. Bitcoin fell by 3.7% on Monday, then partially recovered, with trading prices hovering around $81,500 at the time of writing. Jeff Mei, Chief Operating Officer of cryptocurrency exchange BTSE, stated: "The market views the results of the cryptocurrency summit as mediocre, and when the much-anticipated cryptocurrency reserves only include assets currently held by the government, major cryptocurrencies react to the downside." The US government currently holds around $17 billion worth of Bitcoin and about $400 million worth of other tokens, mainly from assets seized in civil and criminal cases. Jeff Mei added: "Bitcoin is likely to fall to the $70,000-$80,000 range in the coming weeks. Only when the global tariff war intensifies and impacts the global economy will there be a clear signal for a bottom in the cryptocurrency market.""Only after the easing is evident and the Fed starts cutting rates again, will major cryptocurrencies begin to move back towards their all-time highs.""Bonjour, comment a va ?" "Hello, how are you?"