Strategy Issues 5 Million Shares to Boost Bitcoin Holdings Amid Market Uncertainty

Strategy has announced its plan to issue 5,000,000 shares of its Series A Perpetual Strife Preferred Stock. This move is part of the company's broader strategy to expand its Bitcoin holdings under the current market conditions. The public offering is registered under the Securities Act of 1933 and aims to leverage equity markets to bolster the company's Bitcoin reserves. The net proceeds from this offering will be used for general corporate purposes, with a particular focus on acquiring more Bitcoin and supporting working capital.

The preferred stock offering carries a 10% annual cumulative dividend, payable quarterly beginning June 30, 2025. Unpaid dividends will initially compound at 11%, increasing annually up to 18%. The liquidation preference per share starts at $100, subject to market-based adjustments. This financial instrument is designed to attract investors while offering Strategy financial flexibility. Each share earns a fixed 10% annual dividend, paid quarterly. Missed dividends will compound, starting at 11% and increasing by 1% annually up to 18%.

If outstanding shares drop below 25% of the original issue or certain tax events occur, Strategy may redeem all shares at liquidation preference plus accrued dividends. Shareholders may also require Strategy to repurchase shares if a “fundamental change” takes place. Market-based adjustments to the liquidation preference ensure the preferred stock remains competitive. The offering is being managed by Morgan Stanley, Barclays, Citigroup, and Moelis & Company, who will serve as joint book-running managers, handling the execution of the sale.

This equity issuance continues Strategy’s aggressive approach of using public offerings to fund Bitcoin acquisitions. In March, Strategy announced a $21 billion ATM preferred stock offering to boost its Bitcoin reserves. Strategy is among the largest corporate holders of Bitcoin, using capital markets to fund its accumulation strategy. The offering arrives during market uncertainty, with Bitcoin hovering above $80,000 amid concerns about President Trump’s economic policies. Michael Saylor, Strategy’s co-founder, remains a vocal advocate of Bitcoin as a store of value. He attended the recent White House Crypto Summit, where he unveiled a long-term digital asset strategy he claimed could generate up to $100 trillion for the U.S. economy within a decade.

Looking forward, Strategy’s Bitcoin accumulation is not stopping anytime soon, and the company’s aggressive style has been copied by other similar competitors who are now accumulating the current market bottom. This move by Strategy underscores its commitment to Bitcoin as a strategic asset, despite the volatility and uncertainty in the market. The company's proactive approach to leveraging equity markets to fund its Bitcoin holdings reflects its long-term vision and confidence in the digital currency's potential.