Business intelligence firm-turned-Bitcoin giant Strategy has raised its preferred stock offering to $2 billion from $500 million as of Thursday noon in New York. The company, formerly known as MicroStrategy Inc., said it did this to raise more capital to buy additional Bitcoin.
According to Bloomberg, the new Series A Perpetual Stretch preferred shares were priced at $90 each, the lower end of the expected $90–$95 range.
Each share comes with an initial 9% dividend and is part of a 5 million share sale. The offering is being underwritten by major firms, including Morgan Stanley, Barclays, TD Securities, and Moelis & Co.
Strategy’s common stock (MSTR) was trading at around $412.31 earlier today. This puts the company’s market value near $115 billion. The stock is up 42.5% this year and has gained over 146% in the past 12 months.
The new preferred shares will sit higher in priority than Strategy’s Strike and Stride preferred shares and common stock, but lower than its Strife preferred shares and previously issued convertible bonds.
According to a source, the Stretch shares also offer cumulative dividends, and Strategy may adjust the rate monthly. It can be raised by any amount or reduced by up to 0.25% per year, plus any drop in the one-month SOFR rate.
Strategy plans to use the raised funds to continue buying Bitcoin. The firm currently holds 607,770 BTC, worth about $72.4 billion, as reported on its website. That’s about 66% of all Bitcoin held by publicly traded companies. Bloomberg reported earlier that Strategy now owns roughly 3% of all Bitcoin in circulation.
Strategy’s aggressive Bitcoin strategy has outpaced the S&P 500 and the tech sector, each of which rose just 17% in the past year, according to Fidelity Research.
A Bloomberg source added that the pricing was done at a discount, with shares priced at $90 even though their face value is $100. The stock move follows a previous $740 million Bitcoin buy by the company as prices topped $122,000.
Other firms are following Strategy’s lead. Japanese AI firm Quantum Solutions announced plans to acquire 3,000 BTC, calling it a “long-term, strategic reserve instrument.” Miners like MARA Holdings, Riot Platforms, and CleanSpark are also expanding their reserves. As of now, public companies together hold 918,108 BTC, with Strategy leading by far.
