Bitcoin News Today: MicroStrategy Raises $2.8B Through Preferred Stock Offering to Bolster Bitcoin Holdings

MicroStrategy Inc. (NASDAQ: MSTR) has significantly escalated its corporate Bitcoin strategy by raising $2.8 billion through a newly priced preferred stock offering, a move that underscores CEO Michael Saylor’s aggressive commitment to digital asset accumulation. The initial offering, announced on July 24, 2025, priced 28,011,111 shares of Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) at $90 per share, generating net proceeds of approximately $2.474 billion after underwriting fees [1]. This expansion from a previously announced $2 billion raise reflects heightened investor appetite and MicroStrategy’s intent to deepen its Bitcoin holdings, which now exceed 214,000 BTC [2].

The preferred stock offering includes a 9% initial annual dividend, payable monthly in cash, with the first distribution scheduled for August 31, 2025. The dividend rate is subject to adjustments, constrained by a 25-basis-point cap plus fluctuations in the one-month SOFR rate. The company emphasized its goal of maintaining the STRC stock’s trading price near its $100 stated value through dividend management [3]. MicroStrategy also retains redemption rights, allowing it to repurchase shares at $101 plus accrued dividends under specific conditions, including tax-related events or fundamental corporate changes [4].

Saylor’s strategy has redefined MicroStrategy’s corporate identity, transforming the software firm into a dual-exposure entity with significant Bitcoin holdings. The company has added over 6,000 BTC to its balance sheet in July 2025, pushing its total reserves to approximately 607,000 BTC, positioning it as one of the largest institutional holders [5]. This approach has generated shareholder value during Bitcoin’s bull market but has also drawn scrutiny over volatility risks. Critics argue that holding a substantial portion of corporate assets in a highly volatile asset class could compromise financial flexibility if prices reverse [6].

The capital raise highlights shifting dynamics in corporate Bitcoin adoption. By leveraging preferred stock structures, MicroStrategy has attracted institutional investors seeking yield and exposure to digital assets. Analysts note that the firm’s success hinges on sustained Bitcoin price momentum and broader institutional acceptance. While Saylor remains bullish, the company’s strategy contrasts with more conservative approaches adopted by other firms, which prioritize diversification and risk mitigation [7].

MicroStrategy’s actions have also influenced market sentiment. Historical correlations between its Bitcoin purchases and price spikes suggest its buying power exerts upward pressure on the asset. With over 600,000 BTC under its control, the company’s demand for Bitcoin has created a feedback loop that reinforces its market presence [8]. Regulatory watchers have observed the firm’s approach as a potential precedent for corporate governance models, though no direct legal challenges have emerged. Competitors are reportedly exploring similar strategies, signaling a possible expansion of Bitcoin’s role in corporate balance sheets [9].

The offering, managed by joint book-running underwriters including Morgan Stanley and Barclays, is structured to settle on July 29, 2025. Proceeds will be allocated primarily to Bitcoin acquisitions and working capital, further entrenching the asset as a core component of MicroStrategy’s portfolio.

Source:

[1] [Strategy™ Launches $2 Billion Preferred Stock Offering](https://cryptofrontnews.com/michael-saylor-doubles-down-microstrategy-raises-2b-for-more-bitcoin/)

[2] [MicroStrategy Inc. Stock Quote (U.S.: Nasdaq) - MSTR](https://www.marketwatch.com/investing/stock/mstr)

[3] [Preferred Stock Carries 9% Initial Annual Dividend](https://cryptofrontnews.com/michael-saylor-doubles-down-microstrategy-raises-2b-for-more-bitcoin/)

[4] [Redemption Rights Offer Flexibility and Control](https://cryptofrontnews.com/michael-saylor-doubles-down-microstrategy-raises-2b-for-more-bitcoin/)

[5] [MicroStrategy Inc., the software company led by CEO Michael Saylor...](https://cryptofrontnews.com/michael-saylor-doubles-down-microstrategy-raises-2b-for-more-bitcoin/)

[6] [MicroStrategy’s Strategic Pivot](https://cryptofrontnews.com/michael-saylor-doubles-down-microstrategy-raises-2b-for-more-bitcoin/)

[7] [Analysts Note Evolving Corporate Bitcoin Dynamics](https://cryptofrontnews.com/michael-saylor-doubles-down-microstrategy-raises-2b-for-more-bitcoin/)

[8] [Market Sentiment and Bitcoin Price Correlation](https://cryptofrontnews.com/michael-saylor-doubles-down-microstrategy-raises-2b-for-more-bitcoin/)

[9] [Corporate Governance and Regulatory Considerations](https://cryptofrontnews.com/michael-saylor-doubles-down-microstrategy-raises-2b-for-more-bitcoin/)