Strategy Upsizes Preferred Stock Offering to Boost Bitcoin Holdings

Estimated reading time: 4 minutes

• Strategy announced a $979.7 million preferred stock offering to boost Bitcoin acquisition.
• The new preferred stock will be issued at $85 per share, with a 10% non-cumulative dividend aimed primarily at institutional buyers.
• Proceeds will primarily fund additional Bitcoin purchases, potentially acquiring around 9,633 BTC.
• Michael Saylor, the company’s executive chairman, continues to champion Bitcoin as a corporate treasury asset.
• Concerns about the sustainability of the stock’s premium over underlying assets are being raised by financial analysts.

Strategy, previously known as MicroStrategy, has significantly expanded its plans to purchase additional Bitcoin. The company announced a $979.7 million[1] preferred stock offering, increasing the target from an original $250 million. This move increases Strategy’s available capital for Bitcoin acquisitions and reflects ongoing institutional interest in Bitcoin-backed securities.

Earlier this week, Strategy introduced its 10.00% Series A Perpetual Stride Preferred Stock (ticker: STRD), planning to issue about 11.76 million shares at $85 each[2][3]. The shares include a non-cumulative 10% dividend and are intended primarily for institutional buyers and select individual investors. The offering is expected to settle on June 10, 2025, subject to typical closing conditions[4].

Unlike previous funding rounds which used common stock and convertible notes, this latest offering utilizes preferred stock. This approach is designed to raise capital while reducing dilution risks for holders of common shares, as preferred equity has a different structure[5]. The STRD offering represents Strategy’s largest single fundraising effort to date in support of its strategy centered on Bitcoin holdings.

Most proceeds from the offering are designated for the purchase of additional Bitcoin. Some of the funds may also support general corporate initiatives and working capital. At the current price of about $103,800 per Bitcoin, the funds could allow Strategy to acquire approximately 9,633 BTC[6].

Strategy currently holds 580,955 BTC, valued at over $61.7 billion as of this month[7]. This amount is larger than the collective Bitcoin reserves of the next 117 publicly traded companies that hold Bitcoin.

Investor interest in Strategy remains strong. Company shares have traded at a 112% premium to the combined value of its Bitcoin assets and operational business, reflecting market confidence in its acquisition strategy and potential regulatory positioning[8]. However, this premium is less than that seen in some other companies, such as Japan’s Metaplanet, where shares reached a 5x markup over spot Bitcoin in late May[9].

Michael Saylor, Strategy’s executive chairman and co-founder, is leading the capital raise. Saylor has consistently advocated for Bitcoin as a corporate treasury asset[10]. The company continues to acquire Bitcoin as its primary reserve, a policy that has drawn institutional attention and may influence other publicly traded firms[11].

Some financial analysts have raised concerns about the ongoing share premium. Firms such as VanEck and 10x Research noted the gap between market valuation and the underlying assets, and questioned whether the premium can be sustained. They also highlighted the growing trend of linking equity raises to the concept of “Bitcoin yield”[8].

As the settlement of the preferred stock offering approaches, Strategy’s actions are drawing attention to broader changes in corporate finance involving digital assets. The outcome may provide other companies with an example for managing large-scale cryptocurrency holdings.

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1. Bitbo.io, June 7, 2025, https://bitbo.io/news/strategy-raises-1b-bitcoin/
2. Cointelegraph, June 5, 2025, https://cointelegraph.com/news/michael-saylor-strategy-250m-preferred-stock-buy-more-bitcoin
3. Strategy Press Release, June 8, 2025, https://www.strategy.com/press/strategy-announces-pricing-of-initial-public-offering-of-strd-stock_06-08-2025
4. Strategy Press Release, June 8, 2025, https://www.strategy.com/press/strategy-announces-pricing-of-initial-public-offering-of-strd-stock_06-08-2025
5. Bitbo.io, June 7, 2025, https://bitbo.io/news/strategy-raises-1b-bitcoin/
6. Bitbo.io, June 7, 2025, https://bitbo.io/news/strategy-raises-1b-bitcoin/
7. Cointelegraph, June 5, 2025, https://cointelegraph.com/news/michael-saylor-strategy-250m-preferred-stock-buy-more-bitcoin
8. Bitbo.io, June 7, 2025, https://bitbo.io/news/strategy-raises-1b-bitcoin/
9. Bitbo.io, June 7, 2025, https://bitbo.io/news/strategy-raises-1b-bitcoin/
10. Cointelegraph, June 5, 2025, https://cointelegraph.com/news/michael-saylor-strategy-250m-preferred-stock-buy-more-bitcoin
11. Bitbo.io, June 7, 2025, https://bitbo.io/news/strategy-raises-1b-bitcoin/