Bitcoin (BTC) Treasury Company’s strategy has expanded the scope of its STRC twice after releasing corporate security on 22 July.
The company announced an AT-the-market offer of up to $ 4.2 billion of its convertible rate chain, which is a hybrid corporate security to buy more BTCs, a always stretch favorite stock (STRC), a hybrid corporate security. Thursday,
STRC is a dividend-paying protection that contains convertible yields, with no maturity date and can be called or redeemed by the company under specific terms, which makes the terms of repayment repayment according to Thursday. Announcement,
The company launched the Strc in July, raising each part of the corporate security to $ 100, and was initially demanding an increase of capital of $ 500 million.
The strategy expanded a scope of $ 2 billion two days after launching STRC to select investors through an early public offering (IPO), and bought more than 21,000 BTCs with upcoming funds.
Its debt and equity-fuel BTC procurement continues to divide the crypto and investment community. Some analysts have argued that the strategy and other BTC Treasury plays are bubbles waiting for the drama, which may cause a decline in crypto markets.
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Investor suies against strategy
Several law firms have filed litigation against the company on behalf of the plaintiff, who alleged that the company has incorrectly presented bitcoin volatility risks and estimated profits.
Cointelegraph spoke to several lawyers, which were divided on the substance of claims and said that it could take years to solve the cases.
The Attorney Brandon Ferric told Cointelegraph, “The plaintiff is alleging that the profitability was abolished and the risks were understood, not these things were completely absent from the revelations.”
Similar claims appeared in many cases, namely the use of an alternative financial matrix strategy, allowing the company to dissolve financial losses that would be clear on using various accounting methods.
One of the class action cases said, “The company introduced many new major performance indicators (KPI) – ie, BTC Yield, BTC Gains, and BTC Dollar profit – to measure its financial results.”
Michael Sayler, co-founder of the strategy and advocate of bitcoin, pushed back against the criticism of the company’s business model, arguing that the strategy is a misunderstanding enterprise.
“We impose capital on the most new technology and property in the history of mankind; on the other hand, we are probably the most wrong and the most incorrect and underwelled stock in the world,” Sailler said during the company’s most recent earnings call.
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