%Strategy (NASDAQ: $MSTR) is selling more stock so that it can raise funds and purchase additional %Bitcoin (CRYPTO: $BTC).
However, the software company turned serial Bitcoin acquirer has had to lower the price on its latest stock offering amid signs of weak demand from investors.
The company led by Chairman Michael Saylor says it now plans to sell perpetual preferred stock at $85 U.S. a share, which is 15% below the $100 U.S. price it originally planned to offer the shares at a week ago.
Strategy, formerly known as MicroStrategy, has increased the size of its stock offering, saying it will now sell 8.5 million shares to net $711 million U.S. after expenses.
That’s up from an initial plan to sell five million shares at $100 U.S. apiece. The company plans to use the funds raised to add to its Bitcoin holdings.
Perpetual preferred shares are like a combination of bonds and stocks and typically offer investors big dividend payouts.
Strategy’s preferred shares are expected to offer a dividend yield of about 12%. The latest stock offering is expected to conclude on March 25.
Analysts say Strategy likely needed to offer a lower price and large dividend yield to attract investors who may be weary of cryptocurrencies amid current market volatility.
Bitcoin’s price is down from a record high of just over $109,000 U.S. reached this January.
Strategy is the largest corporate owner of Bitcoin in the world with nearly 500,000 BTC or about 2.5% of the available global supply.
Currently, Bitcoin is trading at $87,300 U.S. per digital token.
