Strategy, the business intelligence firm led by Michael Saylor, has announced plans to raise approximately $711 million through a ‘Series A Perpetual Strife Preferred Stock’ (STRF) offering. The company intends to use the funds to expand its Bitcoin reserves, which are nearing 500,000 BTC. This move aligns with Strategy’s ongoing commitment to increasing its Bitcoin holdings as part of a broader investment strategy.
Increased Share Offering and Strong Institutional Backing for Bitcoin Investment Strategy
Due to strong investor interest, Strategy has increased its offering from 5 million to 8.5 million shares, now priced at $85 per share. The preferred stock will provide cumulative dividends at a fixed annual rate of 10.00%, with a stated amount of $100 per share. The significant demand for these shares highlights confidence in Strategy’s Bitcoin-focused financial strategy.
Michael Saylor’s Strategy Raises $711M to Expand Bitcoin Holdings Nearing 500,000 BTCThe stock offering is being managed by major financial institutions, including Morgan Stanley, Barclays Capital, Citigroup Global Markets, and Moelis & Company as joint book-running managers. Additional co-managers include AmeriVet Securities, Bancroft Capital, BTIG, and The Benchmark Company. This strong backing from well-established banks signals institutional support for Strategy’s Bitcoin-driven approach.
Liquidity Adjustments, Redemption Rights, and Strategy’s 21/21 Bitcoin Expansion Plan
The liquidation preference for STRF shares will start at $100 per share and adjust daily based on market conditions. Strategy also retains the right to redeem shares if the outstanding amount falls below 25% of the original issuance or if certain tax events occur. Additionally, shareholders will have the option to require the company to repurchase their shares in the event of fundamental business changes.
This offering is a crucial part of Strategy’s ambitious 21/21 plan, which aims to raise $42 billion over three years—half from equity and half from fixed-income securities—to further expand its Bitcoin holdings. As disclosed in its Q3 2024 financial report, the company has already acquired 246,000 BTC since October 2024. Through aggressive fundraising and strategic acquisitions, Strategy now controls nearly 2.4% of the total Bitcoin supply, reinforcing its position as a leading institutional Bitcoin investor.