Michael Saylor's NYDIG Creates Bitcoin-Backed Preferred Stock Offering

Michael Saylor's MicroStrategy is launching a $2 billion "Stretch" Preferred Stock offering that uses bitcoin to create a stable income-generating investment vehicle. Backed by $71.7 billion in bitcoin and only $11 billion in liabilities, the offering offers a 9% dividend and aims to deliver returns similar to traditional short-term instruments. Investor interest has driven the offering size to quadruple, making it a bitcoin-backed, money-market-style vehicle for traditional finance income investors.

Michael Saylor's MicroStrategy has launched a $2 billion "Stretch" Preferred Stock offering, leveraging Bitcoin to create a stable income-generating investment vehicle. The offering, which carries a variable 9% dividend, is designed to deliver returns similar to traditional short-term instruments. The offering has quadrupled in size due to high investor interest, transforming into a Bitcoin-backed, money-market-style vehicle for traditional finance income investors.

The "Stretch" offering stands as MicroStrategy's most flexible stock issuance to date, with a monthly variable 9% annual dividend. Initially planned to raise $500 million by selling 5 million shares at $100 each, the offering has been expanded to $2.8 billion, with shares now priced at $90. This new offering is part of MicroStrategy's long-term plan to raise $84 billion and accumulate more Bitcoin as the top corporate BTC holder.

The proceeds from this sale will be used to buy even more Bitcoin, helping MicroStrategy reach its target of holding 1 million BTC. The company already holds over 607,000 BTC, worth over $72 billion. Michael Saylor, Executive Chairman of MicroStrategy, believes Bitcoin is "digital gold" and a superior asset for long-term value preservation.

The "Stretch" offering is a strategic move by MicroStrategy to adapt to market conditions while funding its aggressive Bitcoin buying spree. It is part of MicroStrategy's broader financial strategy of leveraging Bitcoin as a "store of value" and inflation hedge.

Not everyone is convinced that MicroStrategy's Bitcoin-heavy approach is wise. While many admire the company's vision, some analysts warn that the debt-fueled strategy could become a significant problem if Bitcoin's price drops strongly. The increased leverage in the system could force the firm to sell assets, repay debt, or face insolvency.

However, Saylor appears confident in his strategy. He believes that short-term volatility is worth the long-term gain and that Bitcoin will eventually outperform every other asset class.

Institutional interest in crypto is growing, with several spot Bitcoin ETFs approved earlier this year. However, what sets MicroStrategy apart is its direct ownership strategy. Instead of offering funds or ETFs, the company buys and holds Bitcoin on its balance sheet, making it one of the purest corporate plays on Bitcoin today.

The Bitcoin Tracker data reveals a strategic accumulation of over 600,000 Bitcoin (BTC) in MicroStrategy's treasury, with initial investments exceeding a quarter billion BTC. The tracker underscores a deliberate and transparent approach to Bitcoin's adoption as a corporate asset.

The "Stretch" offering is a significant step in MicroStrategy's long-term plan to lead the pack in Bitcoin adoption. It represents a new type of investment vehicle that brings Bitcoin's potential to traditional finance income investors.

References:
[1] https://theweal.com/news/microstrategy-expands-bitcoin-push-with-2-8b-stock-offering/373/
[2] https://www.ainvest.com/news/bitcoin-news-today-microstrategy-bitcoin-holdings-top-1-08b-institutional-adoption-rises-35-qoq-50-ytd-2507/
[3] https://www.coindesk.com/business/2025/07/27/michael-saylor-is-bringing-bitcoin-backed-money-market-style-vehicle-to-wall-street-nydig