Strategy to Sell Up to $2.1 Billion of Preferred Stock to Raise Capital for More Bitcoin Buying

Michael Saylor's Strategy, known for its aggressive Bitcoin accumulation strategy, has announced plans to raise as much as $2.1 billion

Key Takeaways:

Michael Saylor’s Strategy (Nasdaq:STRG), known for its aggressive bitcoin (BTC) accumulation strategy, is planning to raise as much as $2.1 billion through a sale of its 10% Series A Perpetual Strife Preferred Stock.

The disclosure dated May 22, 2025, sales agreement with TD Securities, Barclays Capital, and The Benchmark Company to issue shares on a continuous basis.

The preferred stock, trading under the ticker "STRF," closed at $100.65 on Monday, May 21.

The capital raise follows a similar structure to Strategy's previous fundraising rounds, many of which directly funded large-scale bitcoin purchases.

While the filing does not explicitly state that the proceeds will be used to buy bitcoin, the move has sparked speculation across markets that another major crypto buy may be in the works.

The offering allows MicroStrategy to sell shares at market prices or through negotiated deals and block trades. There’s no escrow arrangement — sales will be conducted over time at the company’s discretion. The agents involved are entitled to up to 2% in commission from gross proceeds, and the preferred stock itself carries a 10% annual dividend, paid quarterly in cash if declared by the board.

The latest issuance comes in addition to the 8.5 million shares of the perpetual preferred stock already outstanding. The new shares will carry the same terms, including a $100 liquidation preference and voting rights.

Investors are entitled to regular dividends and redemption rights in the event of significant changes, such as tax events or structural shifts in the company’s business.

Strategy also retains the right to redeem the preferred stock if the outstanding share count drops below 25% of the total ever issued or if a qualifying tax event occurs.

If a “fundamental change” takes place, such as a merger, sale, or delisting, shareholders can require the company to repurchase their shares at face value plus unpaid dividends, according to the filing.

Strategy Could Become Top Publicly Traded Company in World

Jeff Walton, an analyst at Strategy, has said the firm may one day rise to become the top publicly traded company in the world.

Walton believes the company’s unprecedented exposure to bitcoin, which recently crossed $104,000, gives it a unique edge.

“Strategy holds more of the best asset and most pristine collateral on the planet than any other company, by multiples,” Walton said.

As reported, Strategy added another 7,390 BTC to its growing bitcoin treasury, spending $764.9 million during the week of May 12-18 at an average price of $103,498 per coin.

As of May 18, Strategy held a total of 576,230 BTC, acquired at an average cost of $69,726 per coin, ultimately accumulating to $40.18 billion.

The company’s bitcoin-focused strategy has yielded a 16.3% return so far in 2025, supported by bitcoin’s rally above $104,000.