Strategy Raises $250 Million to Buy More Bitcoin

Strategy, the company formerly known as MicroStrategy, has announced plans to raise $250 million through the issuance of a new class of perpetual preferred stock. This move is part of the company's strategy to acquire more Bitcoin, a digital asset that has become a significant part of its investment portfolio under the leadership of its executive chairman and co-founder, Michael Saylor.

The offering involves 2.5 million shares of its 10% Series A Perpetual Stride Preferred Stock, priced at $100 per share. The proceeds from this offering will be used to purchase additional Bitcoin and provide working capital. Perpetual preferred stocks are known for paying fixed dividends indefinitely, with no maturity date, and typically have priority over common stock in payouts. This new fundraising method complements Strategy's existing strategies of issuing common stock and convertible notes to fund its Bitcoin purchases.

Strategy is currently the world’s largest corporate Bitcoin holder, with 580,955 Bitcoin on its balance sheet. This amount is more than double that of all other publicly traded Bitcoin-holding companies combined. The $250 million raised from this offering could allow Strategy to purchase another 2,351.8 Bitcoin at current market prices, with Bitcoin trading at $106,325.

Holders of the new preferred stock, ticker STRD, are eligible to receive 10% annual dividends in cash, but only if declared by Strategy’s board or an authorized committee. These dividends are non-cumulative, meaning unpaid amounts do not carry over to future periods. If declared, STRD dividends would be paid out on the last day of each financial quarter, starting September 30, 2025. Strategy has the option to redeem all outstanding STRD shares for cash if less than 25% remain from the total originally issued. In the event of a "fundamental change," STRD holders can require Strategy to repurchase their shares for cash. The repurchase price includes the $100 liquidation preference plus any declared dividends that haven’t been paid.

The offering is being managed by several investment firms and is being conducted under an effective shelf registration statement filed with the US Securities and Exchange Commission. This move highlights Strategy's dedication to expanding its Bitcoin holdings and reinforcing its position as a leader in the corporate adoption of cryptocurrency. The company's strategy, driven by Michael Saylor, continues to focus on Bitcoin as a key component of its investment approach, aiming to further solidify its status as the largest corporate holder of the digital asset.