Key Takeaways:
Strategy is poised to generate up to $2.1 billion by offering 10% preferred stock, designated as “STRF” on Nasdaq. This initiative has sparked rumors of a potential major Bitcoin acquisition, although no definitive plans have been established. The stock guarantees a 10% annual dividend and includes redemption rights related to tax events or significant corporate changes.
Michael Saylor’s Strategy, recognized for its bold Bitcoin acquisition approach, has disclosed its intention to raise as much as $2.1 billion through the sale of 10% Series A Perpetual Strife Preferred Stock.
This announcement was made public in a filing dated May 22, 2025, which details a sales agreement involving TD Securities, Barclays Capital, and The Benchmark Company for the continuous issuance of these shares.
The preferred stock, which is traded under the ticker “STRF” on Nasdaq, closed at $100.65 on May 21, 2025.
Strategy to Buy More Bitcoin?
The new capital raise mirrors previous fundraising strategies employed by Strategy, many of which directly financed significant Bitcoin purchases.
While the recent filing does not explicitly indicate the proceeds will be used for Bitcoin acquisitions, it has incited widespread speculation in the market about the potential for another large-scale investment in the cryptocurrency.
This offering permits MicroStrategy to sell shares either at market prices or through negotiated agreements and block transactions.
There is no escrow provision; thus, sales will occur over time at the company’s discretion. The involved agents are entitled to a commission of up to 2% on gross proceeds, and the preferred stock itself offers a 10% annual dividend, payable quarterly in cash if the board approves it.
BREAKING: Strategy to sell up to $2.1 billion of 10% preferred stock. pic.twitter.com/80oWuoGg79
— Bitcoin Magazine (@BitcoinMagazine) May 22, 2025
This issuance is additional to the already existing 8.5 million shares of perpetual preferred stock.
The new shares will share identical terms, such as a $100 liquidation preference and voting rights. Investors will benefit from regular dividends and are entitled to redemption rights in case of significant events like tax changes or fundamental shifts in the company’s structure.
Additionally, Strategy retains the option to redeem the preferred stock if the outstanding shares fall below 25% of the total ever issued or in the event of a qualifying tax event.
If a fundamental change occurs—such as a merger, sale, or delisting—shareholders can request that the company repurchases their shares at face value along with any unpaid dividends, according to the filing.
Strategy Could Become Top Publicly Traded Company in World
Jeff Walton, an analyst at Strategy, has suggested that the firm may one day become the top publicly traded company globally.
Walton asserts that the company’s extensive exposure to Bitcoin, which recently surpassed $104,000, provides it with a distinctive advantage.
“Strategy holds more of the best asset and most pristine collateral on the planet than any other company, by multiples,” he declared.
Reportedly, Strategy expanded its Bitcoin holdings by acquiring an additional 7,390 BTC, spending $764.9 million from May 12 to May 18 at an average price of $103,498 per coin.
As of May 18, 2025, Strategy’s total Bitcoin treasury amounted to 576,230 BTC, acquired at an average cost of $69,726 per coin, summing to approximately $40.18 billion.
The firm’s Bitcoin-centric strategy has recorded a return of 16.3% thus far in 2025, buoyed by Bitcoin’s rally past $104,000.
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