US EditionJim Chanos Slams Bitcoin Play Strategy For Bragging About Stability Of Preferred Shares: 'Can You Imagine Any Other CEO With A Plunging Stock…'
Strategy Inc. aims to raise capital through perpetual preferred shares paying 11.25% dividends to fund ongoing Bitcoin purchases amid 16% year-to-date stock decline.
- On Wednesday, veteran short seller Jim Chanos criticized Strategy Inc. over its preferred-share messaging as the stock declined 5.2%
- Strategy turned to capital markets, planning to issue Perpetual Stretch Preferred Stock to fund Bitcoin accumulation, according to company executives.
- Reacting to a Bloomberg interview, Chanos criticized the preferreds and highlighted dilution risk, shorting MSTR while going long Bitcoin as a hedge.
- Strategy's Bitcoin holdings worth $48.17 billion compare to a $41.99 billion market valuation, trading at a NAV discount, while preferreds offer steady yield for retirees and conservative funds.
- Continuing its capital-market approach, the company plans further accumulation financed via preferreds, with Strategy purchasing another $90 million of Bitcoin in recent weeks, Saylor said.
16 Articles
16 Articles
Michael Saylor Pledges to Buy Bitcoin Every Quarter as Strategy Taps Preferred Stock to Accelerate BTC Accumulation
Despite the Bitcoin bloodbath, major banks and corporates are showing renewed interest in the digital asset. While JPMorgan recently said Bitcoin looks more appealing than gold, Strategy's Michael Saylor reiterated his long-term BTC accumulation plan.'We're not going to be selling. We're going to be buying Bitcoin. I expect we'll be buying Bitcoin every quarter, forever,' Saylor said in a recent interview with CNBC, despite the value of Strategy…
So far, preference shares play only a secondary role in the financing of the big Bitcoin investor. With the new plans, Strategy responds to investor concerns.
Jim Chanos Slams Bitcoin Play Strategy For Bragging About Stability Of Preferred Shares: 'Can You Imagine Any Other CEO With A Plunging Stock…'
Veteran short seller Jim Chanos slammed Strategy Inc. (NASDAQ:MSTR) for touting the stability of its perpetual preferred shares on Wednesday, even as its main stock continues to get hammered. Chanos Takes Fresh Dig At Strategy Chanos reacted to a Bloomberg interview where Strategy CEO Phong Le described the firm’s Perpetual Stretch Preferred Stock (NASDAQ:STRC) closing at $100 as the “story of the day” and “exactly how it was engineered to perfo…
Strategy Expands Preferred Stock Sales to Fund Additional Bitcoin Purchases Amid Market Volatility
Strategy uses preferred stock to buy more Bitcoin while reducing exposure to market volatility. The Stretch preferred shares offer an 11.25% dividend to attract stable income investors. Strategy now holds over 714,000 Bitcoin worth about $48 billion. Strategy is expanding its preferred stock program to fund more Bitcoin purchases. The company wants to reduce pressure from sharp market swings. Its share price continues to move closely with Bitcoi…
Coverage Details
Bias Distribution
- 40% of the sources lean Left, 40% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
