Bitcoin (Btc) The approach to the Treasury Company has expanded the scope of the STRC which offers twice from the release of corporate security on July 22.
The company announced an AT-the-Market offer of up to $ 4.2 billion of variable rate series a Perpetual Stretch preferred stock (STRC), a hybrid corporate security, to buy more BTC to Thursday.
STRC is a security paying dividend with a variable yield with no set date of maturity and may be called or redeemed by the company under specific conditions, making payment terms flexible, according to Thursday announcement.
The company Strc launched in JulyParting with each corporate security component at $ 100, and initially looking for a $ 500 million increasing capital.
Strategy Expanded the scope of increase to $ 2 billion two days after Launching the STRC to select investors through an initial public offering (IPO), and bought more than 21,000 BTC to the subsequent fund.
The debt and purchase of the Equity-Fueled BTC will continue to divide the crypto and investment community. Some analysts have argued that the approach and other BTC treasury plays are bubbles waiting to explode, which could create a collapse in crypto markets.
Related: Michael Saylor joins the choir for clarity as we work to legal to define crypto
Investors’ suits against strategy are pile
Multiple law companies have filed a trial against the company On behalf of the plaintiff claims the company has mistakenly risked the risks of bitcoin volatility and expected income.
Cointelegraph talked to many lawyers, divided into the substance of claims and said the suits could take years to resolve.
“Plaintiffs say that profitability is overstated and that the risks are not deducted, not that these things are completely out of the disclosure,” attorney Brandon Ferrick told Cointelegraph.
Many of these suits feature similar claims, especially the use of the approach of alternative financial metrics is deceptive, allowing the company to disguise financial losses that will be apparent if various accounting methods are used.
“The company has introduced several new performance indicators (KPIS) – that is, BTC yield, BTC benefits, and benefits of BTC dollars – to measure financial results,” said one of the class action actions.
Strategy co-founder and Bitcoin advocate Michael Saylor pushed back against the company’s business model criticism, focusing on that The approach is a dispute business.
“We have been capitalizing on the most innovative technology and possession of humanity’s history; on the other hand, we are likely to be the most misunderstood and undervalued stock in the US and the world’s potential,” Saylor said in a recent call to the company’s income.
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