Whale Strategy (MSTR.US) continues to show financial skills: 9% dividend preferred stock crazily raises $2.8 billion to increase investment in Bitcoin.

According to informed sources, as the cryptocurrency market continues to heat up, Michael Saylor's bitcoin holding company, Strategy (MSTR.US), has launched a new class of preferred shares called "Stretch" and increased the issuance size from the initial planned $500 million to $2.8 billion. This financial product, priced on Thursday, promises investors up to a 9% annualized dividend yield, with no maturity date - a rarity in the obscure world of preferred share issuance. This move once again demonstrates Saylor's capital operation magic. Over the years, he has consistently transformed this once mediocre software company (formerly known as MicroStrategy) into a financial giant, with his core strategy remaining the same: raise the largest amount of funds and acquire the most bitcoin. The latest data shows that the company now holds around 600,000 bitcoins, worth about $70 billion. Duke University professor Campbell Harvey said, "This is not the first time Strategy has shown financial skill. When the company's market value far exceeds its fundamental value, financing expansion is the inevitable choice." Since first purchasing bitcoin in 2020, Saylor has raised funds through issuing common stock, various bonds, and multiple rounds of preferred shares. In the process, he has not only inspired many imitators, but also helped create a whole new industry - many public companies have adopted the so-called "cryptocurrency financial strategy," specifically for purchasing and holding cryptocurrencies. Although the financial instruments previously introduced by Strategy have been well received and exceeded expectations, the unprecedented subscription size of "Stretch" still raises eyebrows. On Wednesday, the company's common stock rose by 0.5%, with a cumulative increase of 43% for the year. In this complex capital structure company, the repayment order of the "Stretch" preferred shares is higher than that of common shares and series of preferred shares such as "Strike" and "Stride", but lower than convertible bonds and "Strife" preferred shares. Unlike previous products, "Stretch" allows the company to dynamically adjust the dividend. The dividend rate will be reset monthly based on share price fluctuations, stabilizing the stock price near the $100 benchmark through flexible adjustments - this is not only a pricing model, but also a trust game, vividly showcasing Strategy's "self-made rules" style of doing things. While this flexibility may attract Saylor's retail fans, it also adds new variables to its already complex capital structure. In addition, there are signs that Saylor's financial skills are experiencing diminishing marginal returns: the ratio of the company's market value to its bitcoin reserve value continues to decline. To win over investors, in this issuance, Strategy ultimately priced the shares at a discounted price of $90 per share (only 90% of face value), at the lower end of the price range, but the hot subscription scene not only confirms Saylor's appeal, but also reflects the market speculation craze that has not abated. According to earlier reports, the issuance was jointly managed by Morgan Stanley, Barclays PLC Sponsored ADR, Moelis & Co., and Daiwa Securities.