Strategy has unveiled a bold new capital-raising plan, aiming to issue up to $2.1 billion in Series A Perpetual Preferred Stock, offering investors a 10% annual dividend. The move underscores Executive Chairman Michael Saylor’s enduring commitment to expanding the firm’s already substantial Bitcoin holdings.
The offering will be conducted via “at-the-market” (ATM) transactions under SEC Rule 415(a)(4). This approach provides Strategy with the flexibility to sell shares gradually, capitalizing on favorable market conditions or executing negotiated block trades with institutional investors.
Targeting General Corporate Use – and Bitcoin
According to the company, proceeds from the preferred stock sale will be used for “general corporate purposes,” though it specifically cited the potential for additional Bitcoin purchases. Strategy’s treasury policy has long favored converting excess cash into BTC a strategy that has helped it amass a record-setting 214,000 BTC to date.
This offering marks a departure from previous funding efforts, which relied on convertible notes. Instead, Strategy is now turning to equity-like capital that avoids diluting common shareholder voting power while still bringing in large-scale investment.
High Dividend Reflects Market Conditions and Bitcoin Exposure
The 10% annual dividend yield is notably high and reflects both current interest rates and the perceived risk associated with backing a company so heavily invested in Bitcoin. Preferred stock operates as a hybrid between debt and equity: it pays fixed dividends without imposing a fixed maturity or principal repayment schedule.
Crucially, Series A preferred shares are perpetual, meaning they have no maturity date. Investors will receive dividends indefinitely, making this not just a bet on Strategy, but also on the long-term trajectory of Bitcoin.
Reinforcing Strategy’s Identity as a Bitcoin Proxy
This latest move solidifies Strategy’s growing role as a de facto Bitcoin investment vehicle under Saylor’s leadership. By opting for preferred equity over traditional debt, the company avoids burdening its balance sheet with future repayment obligations all while maintaining flexibility to expand its crypto holdings.
In an environment where regulatory clarity around crypto continues to evolve and institutional interest in Bitcoin rises, Strategy’s offering could attract yield-hungry investors who believe in the digital asset’s future.
With this $2.1 billion preferred stock issuance, Strategy is doubling down on its Bitcoin-centric vision. The combination of a high-yield dividend, flexible sale structure, and a continued focus on BTC accumulation sends a clear message: Strategy isn’t slowing down it’s preparing to buy more Bitcoin if the market allows.
