- Strategy to raise $2.1B via high-yield Bitcoin-focused preferred stock.
- The company holds 576,230 BTC, representing 2.9% of the total supply.
- Preferred stock offers 10% yield, avoiding common shareholder dilution.
Strategy (formerly known as MicroStrategy) announced a new plan to raise to $2.1 billion on May 22, 2025. According to a prospectus supplement filed the same day, the company will issue 10.00% Series A perpetual preferred stock. This new stock is called Perpetual Strife Preferred Stock and trades under the code STRF.
Strategy Tops Public Bitcoin Holdings, Plans More Purchases
The purpose of this fundraising is to support Strategy’s long-term Bitcoin plans. Specifically, the money raised will be used for general corporate needs, including buying more Bitcoin. This step shows the company’s continued commitment to using Bitcoin as a key part of its treasury strategy. As of now, Strategy holds more than 214,000 BTC, the largest amount owned by any public company.
Unlike previous funding methods that involved convertible notes, this time, Strategy is using a different kind of financial tool. Preferred stock works as a mix of debt and equity. It does not reduce the voting power of common shareholders. However, it offers a fixed dividend — in this case, 10% annually. This high dividend reflects the risk involved in investing in a company so heavily tied to Bitcoin, especially in today’s interest rate climate.
To help sell this preferred stock, Strategy has signed an agreement with three major financial firms: Barclays Capital, The Benchmark Company, and TD Securities. These firms will act as sales agents. They will sell STRF shares carefully, depending on market conditions. This means the stock will only be issued when prices and demand are favorable.
As of May 21, STRF shares were trading at $100.65 each on the Nasdaq exchange. While there is no minimum sales target, the goal is to raise $2.1 billion. From the total raised, 2% will go to the sales agents as commission. The rest will be used by Strategy for corporate purposes and potentially to buy more Bitcoin.
Strategy Blends Finance and Crypto with Bold Bitcoin Treasury Model
This approach is not new for Strategy. The company typically uses funds raised by selling stock to purchase Bitcoin. Because of this, it currently holds 576,230 BTC. Currently, the supply includes approximately 19.86 million Bitcoin, and the amount sold is about 2.9% of that.
It happens that Bitcoin just hit a new milestone price, making this announcement very fitting. According to CoinMarketCap data, Bitcoin was trading at $111,880. Despite falling somewhat to $110,500, the current price has increased by 2% in the last 24 hours. Preferred stock helps the firm become officially financed at a level that pays investors and maintains full control for the common shareholders. Making this move could be very rewarding if Bitcoin’s prices stay high or go even higher.
Strategy’s big issuance of preferred stock highlights a new way companies are adopting Bitcoin. By creating equity-like products, the company hopes to satisfy investors as it develops its long-term digital asset aims. This way of doing things assures the shareholders and also proves that Strategy is leading in duplicating financial tools into the cryptocurrency world. If Bitcoin keeps rising, Strategy’s choice may introduce a new way for companies to use blockchain for treasury management.
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