MicroStrategy Launches 'Stretch' Preferred Shares to Raise $2.8B for Bitcoin Stash

Strategy (MSTR) has launched a new preferred stock called "Stretch" to raise $2.8 billion for its Bitcoin stash. The shares offer a 9% annual payout and no maturity date. This is the latest move by MSTR to raise funds for its Bitcoin purchases, which have fueled the company's stock price to soar 158% over the past year and 43% YTD. Analysts are bullish on MSTR, with a Strong Buy consensus rating and a street-high price target of $680.

Strategy (MSTR), a leading enterprise analytics and business intelligence company, has announced a significant expansion of its preferred stock offering. The company has increased the size of its Series A Perpetual Stretch Preferred Stock (STRC) offering from $500 million to $2.8 billion. The move is aimed at bolstering the company's Bitcoin (BTC) reserves [1].

The STRC preferred stock, priced at $90 per share, carries an initial annual dividend of 9% and has no maturity date. The shares are managed by major financial institutions such as Morgan Stanley, Barclays, Moelis & Company, and TD Securities. The proceeds from the offering will be used to enhance the company's BTC holdings and support its ongoing operations [1].

This latest initiative is part of Strategy's broader Bitcoin strategy, which has seen the company aggressively acquire BTC as a treasury reserve asset. In recent months, Strategy has purchased substantial amounts of BTC, including 6,220 BTC in July for approximately $740 million, bringing its total BTC holdings to 607,770 [1]. The company currently holds over 3% of all BTC in existence, making it the largest corporate holder of Bitcoin [2].

The company's stock has seen substantial growth in recent months, driven largely by its cryptocurrency acquisitions. Over the past year, MSTR's stock price has surged by 158%, and it has gained 43% year-to-date (YTD). Analysts are optimistic about the company's prospects, with a majority rating it a "Strong Buy" and a consensus price target of $543.62, representing a 28% upside from current levels [3].

However, the company's heavy reliance on leverage and its exposure to sharp market drops in the cryptocurrency market pose potential risks. Despite these risks, Strategy's aggressive Bitcoin strategy and its leadership position in the corporate crypto space have drawn significant investor interest.

References:

[1] https://www.mitrade.com/insights/news/live-news/article-3-985760-20250725
[2] https://coinpedia.org/news/strategy-raises-strc-offering-to-2-billion-to-buy-more-bitcoin/
[3] https://www.barchart.com/story/news/33529898/why-this-analyst-thinks-microstrategy-stock-can-soar-to-a-new-street-high-target-of-680