Strategy Raises $711M Through Perpetual Preferred Stock Offering to Acquire Bitcoin

Highlights:

Strategy raises $711M via Series A Perpetual Preferred Stock offering.
The company plans to use proceeds to purchase more Bitcoin and fund operations.
Strategy now holds over 499,000 BTC, becoming the largest corporate holder.

On March 21, MicroStrategy, which rebranded as Strategy, priced its new 10.00% Series A Perpetual Preferred Stock offering. From this issuance, the company was able to generate $711.2 million to be used primarily to purchase more Bitcoin. This move marks another major step in the vision set by Strategy to increase its Bitcoin holdings.

Strategy announced that it has completed the pricing of its 10.00% Series A Perpetual Preferred Stock (STRF), with a planned issuance of 8.5 million shares at $85.00 per share. The offering size has been increased from the originally planned $500 million to $722.5 million and is…

— Wu Blockchain (@WuBlockchain) March 21, 2025

Details of the Offering and Use of Funds

The offering includes 8.5 million shares at $85 per share. The net proceeds from this preferred stock offering will be used mostly in Bitcoin’s acquisitions and other corporate purposes. This deal will be closed on March 25 under certain necessary closing conditions to be fulfilled. As strategy has pointed out, the net proceeds of the offering will be approximately $711.2 million after associated fees.

The proceeds of the preferred stock will include a 10% cash dividend payable to investors annually, which will be paid on a quarterly basis. However, compounded dividends will accumulate if the company does not pay for the dividends. The compounded dividends in turn rise by 1% every quarter with a maximum rate of 18% per year. Furthermore, the company can also redeem the preferred stock if the balance is less than 25% of when it was issued or if certain tax events take place.

Strategy’s Bitcoin Purchases and Impact on Treasury

This offering comes at the backdrop of the Strategy’s active Bitcoin acquisition plan. Recently, the firm used the proceeds from the sale of 123,000 shares of its 8.00% Series A preferred stock to buy 130 Bitcoin at $10.7 million. This transaction aligns with the company’s business model, which relies on Bitcoin and advanced analytics tools offered by Artificial Intelligence technology.

Strategy today announced the launch of $STRF ("Strife"), a new perpetual preferred stock offering, available to institutional investors and select non-institutional investors. For more information, click here. $MSTR https://t.co/YxNmogceGq

— Strategy (@Strategy) March 18, 2025

Upon this acquisition, Strategy has accumulated 499,226 bitcoins, which is worth about $41.6 billion at the current market rate. This makes the company the largest corporate holder of Bitcoin and owns more than 2% of the total Bitcoin supply. However, its Bitcoin investments do not reflect in Strategy’s stock performance. Its shares have dropped more than 23% in the last three months.

The company also provides a number of safeguards for investors in the preferred stock offering. In case of a fundamental change in the company, including a change in control, preferred stockholders have the right to redeem the shares. This provision offers further protection to investors, assuring them that their investments are secure when conditions within the company shift.

The preferred shares will trade under the symbol ‘STRF’ indicating the Strategy’s commitment to the integration of Bitcoin as a core component of its corporate strategy.

Bitcoin Institutional Interest Gains Momentum Amid Slopy Market

Recently, the Japanese-based crypto investment firm Metaplanet increased its Bitcoin holdings to 3,200 coins by buying 150 BTC for $12.5 million. The firm purchased Bitcoin at an average of $83,660 per token. This added approximately $269.3 million to the firm’s capital, with the tokens priced at about $84,150 per token.

Similarly, a video-sharing service Rumble bought 188 BTC for $17.1 million. The firm made the purchase at an average price of $91,000 per coin. The acquisition was part of the firm’s treasury plan to invest up to $20 million of its cash reserves into Bitcoin.