- Strategy raises $711M through preferred stock sale to fund more Bitcoin purchases.
- Offering is priced at $85 per share with 10% dividends, payable quarterly from June 2025.
- Strategy now holds 499,226 BTC valued at $41.8B after the latest $10.7M Bitcoin purchase.
Michael Saylor’s Strategy has announced the pricing of its latest round of 10% Series A Perpetual Strife Preferred Stock. The company intends to raise $711 million in net proceeds by selling 8,500,000 shares, priced at $85.00 per share. The offering aims to close on March 25, 2025, to help Strategy carry out its corporate acquisition strategy for additional Bitcoin assets by advancing its aggressive digital asset optimization plan.
The funds raised will primarily be used for corporate purposes, including acquiring Bitcoin and working capital. Strategy’s corporate structure already heavily favors Bitcoin, as the company has strategically accumulated substantial holdings of the cryptocurrency in recent years.
Details of the Preferred Stock Offering
The perpetual preferred stock will offer a fixed dividend of 10% per annum on the stated value of $100 per share. These dividends will be payable every quarter as of June 30, 2025, with the plan being subject to the approval of the company’s board of directors. If any payment is not made as scheduled, the undistributed dividends will capitalize and the rate may go up to 18% per annum.
The stock also gives investors certain rights, including requesting a repurchase if a “fundamental change” occurs within the company. The repurchase price will include accumulated and unpaid dividends in such a case. Additionally, the company can redeem all shares under certain conditions, including reducing the number of shares outstanding.
Continued Commitment to Bitcoin Acquisition Strategy
Strategy maintains its capital increase strategy through equity offerings to increase its Bitcoin stock assets. This announcement follows its March 17, 2025 acquisition of 130 BTC, the value of which reached about $10.7 million. Strategy now holds 499,226 BTC after buying additional Bitcoin, estimated at $41.8 billion based on prevailing market prices.
Saylor hinted at upcoming plans to enhance debt and equity offerings, which will increase Bitcoin holdings after the March 17 acquisition, which was the smallest purchase. The company continues to use revenue from capital increases to buy Bitcoin and enhance its leadership position in cryptocurrency markets.
Related: Strategy Acquires 130 Bitcoin, Now Holds 499,226 BTC: Report
Market Response and Future Plans
Despite market challenges, the company continues to endorse its Bitcoin acquisition approach, even though its stock experienced a 26% fall during the initial days of March. The company’s inclusion in the Nasdaq 100 index has provided new funding sources to the company, making its financial performance susceptible to broader market movements. The stock has shown some recovery, trading up by 29% from its low in early March. The company plans to raise $21 billion through preferred stock offerings, which will help strengthen its Bitcoin holdings. Stockholders remain interested in the company’s ability to exploit Bitcoin’s rising value and preserve digital financial strength through its treasury management.
