Bitcoin News Today: Strategy Expands Bitcoin Fund to $2.8B via 9% Dividend Shares

Michael Saylor, CEO of Strategy Inc. (formerly MicroStrategy), has expanded the company’s Bitcoin acquisition fund to $2.8 billion through a new preferred stock offering dubbed “Stretch.” The initiative, priced at $90 per share with a 10% discount to par value, offers a 9% annual dividend to investors and reflects the firm’s aggressive strategy to scale its Bitcoin holdings. This move follows a surge in investor demand for the securities, leading the company to increase its initial $500 million offering to $2.8 billion in July 2025 [1].

The Stretch shares are structured as a hybrid financial instrument, ranking above common shares but below convertible bonds. This allows Strategy to adjust dividends monthly, maintaining the shares’ price near $100 amid market volatility [2]. The offering joins a suite of innovative capital tools, including Strike, Stride, and Strife shares, all designed to fund Bitcoin purchases. Saylor emphasized the move as part of a broader effort to transform Strategy into a “corporate treasury giant” in the cryptocurrency space [3].

As of July 2025, Strategy holds 607,770 BTC, valued at over $70 billion, underpinning its balance sheet and enabling further debt issuance secured by Bitcoin. Saylor has set a target of acquiring 1.18 million BTC, a figure he has cited as a benchmark for institutional adoption. “We’re at nearly 11 billion [in gains], so 2/3 more than 2/3 of the way through achieving our BTC gain target,” he stated, underscoring the company’s long-term commitment to Bitcoin as a corporate asset [4].

Analysts highlight the unconventional nature of the Stretch offering. Duke University’s Campbell Harvey noted that Strategy is leveraging its Bitcoin-backed balance sheet to raise capital, creating a unique funding model for corporations investing in digital assets [5]. Barron’s reported that the firm’s Bitcoin holdings now exceed five times its total debt, reinforcing its financial stability [6].

The market has responded positively, with Strategy’s shares rising 43% year-to-date. However, critics question the sustainability of high-yield structures and complex capital instruments. Despite these concerns, Saylor’s strategy continues to attract investors seeking exposure to Bitcoin’s price performance and a 9% dividend in a low-interest-rate environment [7].

This expansion cements Strategy’s role as a pioneer in corporate Bitcoin adoption. By innovating its capital structure, the firm aims to scale its Bitcoin reserves while rewarding shareholders through dividends. Saylor’s vision, as articulated in a Bloomberg interview, is to “redefine corporate finance in the digital age.” With the $2.8 billion fund now operational, Strategy’s next steps will likely shape the trajectory of institutional Bitcoin adoption in the coming months [7].

Source:

[1] Yahoo Finance, https://finance.yahoo.com/news/michael-saylor-amps-bitcoin-war-231256503.html

[2] TipRanks, https://www.tipranks.com/news/strategy-mstr-issues-stretch-shares-to-fuel-2-8b-bitcoin-deal

[3] Coinpaper, https://coinpaper.com/10203/saylor-s-strategy-expands-stretch-shares-amid-surging-investor-demand

[4] CCN.com, https://www.ccn.com/news/crypto/strategy-upsizes-stretch-offering-2b-buy-more-bitcoin/

[5] Coinpaper, https://coinpaper.com/10203/saylor-s-strategy-expands-stretch-shares-amid-surging-investor-demand

[6] Barron's, https://www.barrons.com/articles/microstrategy-bitcoin-stock-preferred-eebb190c

[7] Coinpaper, https://coinpaper.com/10203/saylor-s-strategy-expands-stretch-shares-amid-surging-investor-demand