Bitcoin (BTC) Treasury Company Strategy has widened the scope that its STRC offers twice since the publication of business security on July 22.
The company announced an offer to the market of the market up to 4.2 billion dollars in its variable rate series A perpetual Streat Prwend Stock (STRC), hybrid corporate security, to buy more BTC on Thursday.
STRC is a paid guarantee of dividends with variable yields which does not have a fixed due date and can be called or exchanged by the company under specific conditions, which makes the terms of reimbursement flexible, according to Thursday’s announcement.
The company launched STRC in July, released each business security action at $ 100, and initially sought a capital increase of $ 500 million.
The strategy widened the scope of the increase to $ 2 billion two days after launching STRC to select investors through a first public offer (IPO) and bought more than 21,000 BTC with the funds that followed.
Its debt and BTC purchases fed by shares continue to divide the crypto and the investment community. Some analysts have argued that the strategy and other BTC cash flows are bubbles awaiting bursting, which could create repercussions on the cryptographic markets.
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Proceedings against investors against the strategy accumulate
Several law firms have laid disputes against the company on behalf of the complainants who allege that the company has distorted the risk of Bitcoin volatility and the expected profits.
Cointelegraph spoke with several lawyers, which have been divided on the substance of complaints and said that prosecution could take years to resolve.
“The complainants allegedly alleged that profitability was overestimated and that the risks were underestimated, and not that these things were entirely absent from disclosure,” said lawyer Brandon Ferrick in Cointelegraph.
Many proceedings have presented similar claims, namely the use by the strategy of alternative financial measures was misleading, allowing the company to disguise financial losses which would be apparent if different accounting methods were used.
“The company has introduced several new key performance indicators (KPI) – namely BTC yield, BTC gain and Dollar BTC gain – to measure its financial results,” said one of the collective appeals.
The co-founder of the Bitcoin strategy and defender Michael Saylor postponed criticism from the business model of the company, arguing that the strategy is a poorly understood company.
“We are capitalized on the most innovative technology and assets in the history of humanity; on the other hand, we may be the most ill-understood and undervalued actions in the United States and potentially in the world,” said Saylor during the last call for society.
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