| Key Points: – Michael Saylor’s Strategy is raising $711 million through a Series A preferred stock sale (STRF) to boost its Bitcoin reserves, which are nearing 500,000 BTC. – STRF offers a 10% fixed cash dividend with no equity conversion or Bitcoin upside. |
Strategy, the business intelligence firm led by Bitcoin advocate Michael Saylor, is preparing to raise approximately $711 million through a preferred stock offering, aiming to expand its already sizable Bitcoin holdings, which are nearing the 500,000 BTC mark.
In a statement released Friday, the company announced that it had increased its “Series A Perpetual Strife Preferred Stock” (STRF) offering from an initial 5 million shares to 8.5 million, pricing them at $85 per share.
Strategy Launches $711M Preferred Stock Offering to Boost Bitcoin Holdings
The preferred shares will carry a fixed 10% annual dividend, calculated on a $100-per-share face value, and payable strictly in cash—marking a departure from the more flexible terms of Strategy’s earlier perpetual securities (STRK), which allowed payment in stock.
Unlike traditional convertible securities, the STRF shares cannot be exchanged for common equity. Executive Chairman Michael Saylor positioned the offering as a fixed-income vehicle designed to appeal to investors seeking predictable returns. However, the structure leaves investors exposed to downside risk tied to Bitcoin’s volatility, while offering no upside benefit if the cryptocurrency appreciates.
One unconventional feature of the STRF offering is its dividend escalation clause. If Strategy delays any dividend payments, the rate increases by one percentage point annually, up to a ceiling of 18%. However, doubts have emerged over the company’s ability to meet these obligations.
The liquidation preference for the STRF shares starts at $100 and will adjust daily based on a set of financial benchmarks, including trading performance and stated amounts. Opening the weekend trading session, MSTR stock is currently trading above $300 and has not fluctuated much after the news.
Public filings indicate that Strategy holds less than $50 million in cash reserves, and its traditional software business continues to report losses. The company is expected to rely on raising additional capital, potentially through more equity or debt issuance, to service the dividend payments.
The offering is being managed by a consortium of major financial institutions. Morgan Stanley, Barclays Capital, Citigroup Global Markets, and Moelis & Company LLC are serving as joint bookrunners, while AmeriVet Securities, Bancroft Capital, BTIG, and The Benchmark Company are acting as co-managers.
Michael Saylor Champions Bitcoin as Global Financial Pillar Amid Euro Uncertainty
The announcement comes as Michael Saylor continues to push his ideological stance on Bitcoin. At the 2025 Blockworks Digital Asset Summit, he unveiled a presentation titled “21 Truths of Bitcoin,” calling the digital asset a protocol, ideology, and ethical commodity.
Saylor described Bitcoin as everything from “digital scarcity” and “digital gold” to “perfect money,” underscoring his vision of it as the foundation for a new financial era.
The founder of Strategy also stoked the debate further with a post on X declaring, “EUR gonna need BTC,” echoing his belief that Bitcoin is more than just an asset—it’s a necessity in an evolving financial landscape.
His messaging intensified amid shifting global attitudes toward digital currencies. Following the United States’ strategic pivot under President Trump to increase national crypto reserves, concerns have emerged in Europe about the euro’s position.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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