Strategy, the company formerly known as MicroStrategy, has successfully raised $711.2 million through an upsized preferred stock offering, signaling its continued commitment to expanding its Bitcoin holdings. The move reinforces the firm’s dual business strategy of advancing enterprise analytics and aggressively accumulating digital assets.
Offering Increased from $500M Amid Strong Demand
The company priced its 10.00% Series A Perpetual Strife Preferred Stock at $85 per share, issuing 8.5 million shares in total. Initially targeting a $500 million raise, the offering was increased due to robust investor interest. The transaction is expected to close on March 25, pending customary regulatory approvals and closing conditions.
Net proceeds, after deducting underwriting discounts and offering expenses, are estimated at $711.2 million. Strategy announced that the funds will be used for “general corporate purposes, including the acquisition of bitcoin and for working capital.”
High-Yield Structure With Investor Safeguards
The preferred shares offer a 10% annual dividend, payable quarterly in cash. Should Strategy miss a dividend payment, a compounding mechanism kicks in, with the dividend rate increasing to 11%, and rising by 1% each quarter, capped at 18% annually.
The company retains the right to redeem all outstanding shares if fewer than 25% of the original shares remain or in the event of certain tax-related changes. Shareholders also gain protection through a repurchase right in the case of a “fundamental change,” such as a merger or change in control.
Bitcoin Remains a Strategic Asset
This is Strategy’s second major capital raise in recent weeks. On March 17, the firm disclosed it had acquired 130 BTC for $10.7 million, funded by a prior preferred stock sale. The company has maintained a long-standing Bitcoin treasury strategy since 2020, converting its balance sheet to heavily favor the digital asset.
“We strategically accumulate Bitcoin and advocate for its role as digital capital,” the company stated, reaffirming its bullish stance on the world’s leading cryptocurrency.
In parallel, Strategy continues to develop AI-driven enterprise analytics solutions, maintaining its software business while using Bitcoin as a treasury reserve asset. The firm’s approach has garnered attention from both crypto and traditional finance sectors, blending innovation in analytics with a strong conviction in the future of decentralized assets.
