Strategy Raises $980 Million for Bitcoin Acquisitions via Preferred Stock Offering

Strategy has expanded its Series A Perpetual Stride Preferred Stock (STRD) offering to nearly $980 million, signaling a robust commitment to Bitcoin acquisitions and corporate growth. The offering, priced at $85 per share with a 10.00% annual dividend, is set to settle on June 10, 2025, and includes dynamic liquidation preferences designed to protect investor value amid market fluctuations. This move underscores a strategic alignment with the digital asset sector, leveraging capital markets to bolster its Bitcoin treasury and operational expansion.

Strategy’s recent pricing of 11,764,700 shares of its 10.00% Series A Perpetual Stride Preferred Stock at $85 per share marks a significant capital raise totaling approximately $979.7 million in net proceeds. This sizable infusion is earmarked primarily for strategic Bitcoin purchases and general corporate purposes, reflecting the company’s intensified focus on expanding its digital asset holdings. The offering’s settlement is anticipated on June 10, 2025, subject to standard closing conditions. This capital raise not only strengthens Strategy’s balance sheet but also positions it to capitalize on evolving opportunities within the cryptocurrency market.

The STRD shares carry a non-cumulative dividend rate of 10.00% per annum, payable quarterly starting September 30, 2025. Dividends are declared at the discretion of the board and are payable in cash only, as detailed in the prospectus supplement. Importantly, unpaid dividends do not accrue, which aligns with typical preferred stock features but requires investor attention to dividend declarations. Strategy has incorporated redemption rights that allow the company to redeem shares if outstanding stock falls below 25% of the original issuance or upon specific tax events. Additionally, holders possess repurchase rights triggered by fundamental corporate changes, providing an extra layer of investor protection.

One of the distinctive features of the STRD offering is its dynamic liquidation preference, which starts at $100 per share but adjusts based on the original stated amount, recent market sale prices, and a 10-day average of closing prices. This mechanism ensures that the liquidation value of the preferred shares remains responsive to market activity, thereby safeguarding investor interests against volatility. Such a structure is relatively innovative in preferred stock offerings within the crypto sector, reflecting Strategy’s commitment to balancing growth ambitions with prudent risk management.

The offering is supported by a strong underwriting syndicate, including joint bookrunners and co-managers. This diverse syndicate underscores institutional confidence in Strategy’s business model and its strategic direction toward Bitcoin accumulation.

Strategy’s substantial capital raise and targeted use of proceeds for Bitcoin acquisitions signal a bullish stance on the cryptocurrency’s long-term value proposition. By leveraging preferred stock issuance, the company accesses significant liquidity without immediate dilution of common equity, enabling sustained investment in digital assets. This move may inspire similar capital strategies among peers seeking to enhance their Bitcoin treasuries while maintaining financial flexibility. Moreover, the offering’s terms reflect a sophisticated approach to investor relations, balancing attractive yields with protective features.

Amid a backdrop of increasing institutional interest in Bitcoin, Strategy’s expanded offering aligns with broader market trends favoring crypto asset accumulation. The company’s approach exemplifies how traditional financial instruments can be adapted to support digital asset strategies. Investors and market participants will be closely monitoring the deployment of these funds and the impact on Strategy’s financial performance and Bitcoin holdings. This development contributes to the ongoing maturation and integration of cryptocurrencies within mainstream finance.

Strategy’s $980 million STRD preferred stock offering represents a significant milestone in corporate financing tailored to digital asset expansion. With a compelling dividend structure, dynamic liquidation preferences, and robust underwriting support, the deal positions Strategy to effectively capitalize on Bitcoin market opportunities. This strategic capital raise not only enhances liquidity but also exemplifies innovative financial engineering in the evolving crypto landscape. Stakeholders should watch closely as Strategy executes its Bitcoin acquisition plans and navigates the dynamic market environment.