Strategy Ups Preferred Share Offering to US$2.1B to Boost Bitcoin Purchases

In a bold move to scale up its Bitcoin holdings, Strategy (MSTR) has significantly expanded its preferred share offering through its investment vehicle, Stride (STRD), from an initial US$250 million to a whopping US$2.1 billion. The capital raise is designed not only to facilitate further BTC acquisitions but also to support ongoing operational costs.

The company announced plans to issue 2.5 million new preferred shares under the STRD ticker. Subject to market conditions and regulatory approvals, Strategy is expected to sell approximately 10% of its Series A preferred shares. This expansion reflects the company’s increasing confidence in both its market performance and its Bitcoin-focused treasury strategy.

Originally, Stride was set to issue just 2.5 million shares aimed at retail investors. However, demand and strategic priorities have led to a pivot, with the offering now geared toward select institutional and accredited investors. Proceeds from this offering will be directed in part toward the purchase of Bitcoin—keeping in line with Strategy’s long-term view that BTC is a superior store of value.

According to recent filings with the U.S. Securities and Exchange Commission (SEC), the offering includes 11,764,700 Series A Perpetual Preferred Shares, each bearing a 10.00% dividend. This substantial offering could yield around US$979.7 million in gross proceeds for the company.

Strategy’s aggressive Bitcoin accumulation continues to set it apart from other publicly traded firms. This offering is part of a broader pattern for the company, which has consistently leveraged equity and debt instruments to increase its Bitcoin reserves—demonstrating a level of conviction that few other corporates have matched.

While some market commentators view such a concentrated crypto strategy as risky, others praise Strategy for its consistent and transparent approach. The company’s track record and market performance over recent quarters appear to have bolstered investor confidence, helping to justify the introduction of additional equity instruments like STRD.

The STRD preferred shares are expected to offer fixed-income appeal with upside exposure to Strategy’s BTC-driven business model. It’s a model that aligns with broader institutional interest in Bitcoin, particularly in light of increasing regulatory clarity and the recent uptick in market momentum.

Strategy’s offering represents more than just a capital raise; it's a signal that Bitcoin’s role as a corporate treasury asset is maturing. As traditional finance continues to intersect with digital assets, companies like Strategy are pioneering hybrid financial instruments that blend old and new paradigms.

With the SEC filing in place and market interest on the rise, all eyes are now on how Strategy deploys its fresh capital—and how much more Bitcoin it can secure in the months ahead.

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