MicroStrategy, now operating under the name Strategy, is moving forward with plans to sell up to $2.1 billion worth of preferred stock. The company intends to use the funds primarily for additional Bitcoin purchases. The offering will be made over time through a sales agreement with TD Securities, Barclays Capital and The Benchmark Company, which will act as sales agents.
The offered shares are part of Strategy’s 10.00% Series A Perpetual Stock, listed on Nasdaq under the ticker symbol “STRF.” Each share has a liquidation preference of $100 and pays a cumulative annual dividend of 10%, if declared. As of May 21, the stock was trading at $100.65. The new shares will have the same terms as the 8.5 million already outstanding.
The timing of this offering coincides with a new record high for Bitcoin. Earlier today, the price briefly reached $111,861 before settling near $111,000. Strategy currently holds 576,230 BTC, accumulated since August 2020 at an average cost of $69,726 per Bitcoin. At current prices, Strategy’s holdings are worth just under $64 billion — about 59% above the original cost.
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Bitcoin now makes up over half of Strategy’s $111.4 billion market cap and remains central to its financial strategy. According to the company, the proceeds from this offering will go toward general corporate purposes and additional Bitcoin acquisitions, in line with past capital raises. No funds will be held in escrow.
As with previous offerings, there is no fixed amount that must be sold, and the agents are not required to meet any minimum sales goal. They will receive a fee of up to 2% of gross proceeds. The offering structure gives Strategy the flexibility to issue shares over time based on market conditions. Dividend payments, however, depend on available funds and board approval.
