On March 18, 2025, #Strategy (formerly MicroStrategy) announced plans to raise $500 million through the issuance of new shares to purchase more Bitcoin, just one day after increasing BTC reserves by 0.026%. With a bold strategy and strong belief in 'digital gold,' the Strategy is ramping up the game – but will the market continue to support this ambition?
Strife: Tool for Raising $500 Million
The Strategy introduced a new perpetual preferred stock called Strife, priced at $100/share, with a fixed interest rate of 10%. Unlike Strike (another preferred stock launched in January 2025, yielding 8%, which can be paid in cash or shares), Strife only pays dividends in cash and is exclusively for institutional investors. The first dividend will be paid after about 100 days. This is a strategic move to leverage higher interest rates to attract capital, instead of 0% convertible bonds like in 2024 – when the company raised billions of dollars.
On March 17, the Strategy spent $10.7 million to purchase more Bitcoin, increasing total reserves to 499,356 BTC (valued at $41.4 billion, March 18), up 0.026%. Although this amount is small compared to the current scale, analysts from Decrypt believe that the Strategy shows no signs of stopping despite difficulties in fundraising amid an unstable market.
Bitcoin: Strategic Focus
Since 2020, the Strategy, under the leadership of Michael Saylor, has turned Bitcoin into a primary reserve asset. The company currently owns nearly 2.38% of the total supply $BTC (21 million coins). At the Future Proof Citywide event in Miami on March 17, Saylor noted that the recent drop in Bitcoin prices (from ATH ~108,000 USD to 83,000 USD) is due to 'macro risk zones' – changing expectations for interest rate cuts, tariffs, and economic concerns. However, he remains optimistic: 'When this sentiment reverses, Bitcoin will surge dramatically.'
Market Reaction: Stocks Plummet
On March 18, Strategy's stock fell 6.5% to $275 at market open (Yahoo Finance). Although down 5.5% year-to-date, the price has doubled in the past six months, reflecting long-term support for the Bitcoin strategy. However, fundraising through Strife at 10% interest indicates rising financing costs, as the market is no longer as accommodating as in 2024 – when the company took advantage of 0% bonds to 'scoop' BTC.
Impact on the Crypto Market
Bitcoin Supply: With an additional $500 million, the Strategy could purchase approximately 6,000 BTC (priced at $83,000/BTC), tightening the circulating supply (~14.5 million BTC). This could drive prices up if market sentiment is positive.
Institutional Signal: The Strategy's resilience reinforces institutional investors' confidence in BTC, especially as the US considers accumulating Bitcoin (according to Bo Hines, March 18).
Risk: If BTC prices fall sharply or Strife fails to attract sufficient capital, the Strategy may face financial pressure from high interest costs.
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Conclusion: All-in Betting Strategy?
The plan to raise $500 million through #Strife to buy Bitcoin shows that the Strategy is not just 'going big' but also betting on the future boom of BTC. Despite falling stocks and an unstable market, Michael Saylor's confidence remains unshaken. But with rising capital costs and macro volatility, the big question remains: Will the Strategy's 'hunger' for Bitcoin lead to a resounding victory or a painful fall in the digital asset race? This Tuesday could be a turning point – and the market is holding its breath to see!
Risk Warning: Crypto investment carries high risks due to price volatility. Please consider carefully before participating. #anhbacong