Michael Saylor-led Strategy, formerly known as MicroStrategy, has announced plans to raise up to $500 million through a fresh stock offering, with proceeds earmarked for expanding its already substantial Bitcoin holdings.
According to an official press release, the company is introducing a new class of perpetual preferred stock called Strife, which carries a fixed annual dividend of 10%. The first dividend payout is scheduled to occur approximately 100 days after issuance.
Unlike its previous preferred stock product, Strike, which offered an 8% dividend and featured more flexible terms, Strife dividends will be payable exclusively in cash, providing a more straightforward incentive to institutional investors. Notably, the new Strife shares will not carry conversion rights, meaning they cannot be converted into common stock.
This offering follows Strategy’s successful fundraising campaigns over the past year, which included the issuance of both common stock and zero-interest convertible bonds. The firm’s new move reflects its continued aggressive strategy to accumulate Bitcoin, reinforcing its position as the largest corporate holder of the cryptocurrency.
More Details of the Strife Offering
The Strife shares are priced at $100 each and come with a fixed annual dividend rate of 10%, payable quarterly. If dividends remain unpaid, the rate will compound at an additional 1% per year, potentially increasing up to 18%. The offering is managed by leading financial institutions, including Morgan Stanley, Barclays Capital, Citigroup, and Moelis.
Unlike previous preferred stock offerings by Strategy, such as Strike, with its 8% rate and conversion features, Strife is non-convertible but holds seniority over Strike. The company plans to list Strife on the Nasdaq under the ticker symbol STRF.
Strategy Adds $10.7M in Bitcoin Ahead of Stock Offering
Ahead of its $500 million Strife stock offering, Strategy disclosed a fresh Bitcoin purchase, adding approximately $10.7 million worth of BTC to its balance sheet. This latest acquisition, though modest relative to the firm’s total holdings, strengthens Strategy’s ongoing commitment to expanding its Bitcoin reserves.
The recent purchase increases the company’s Bitcoin stash by roughly 0.026%, bringing its total holdings to around 499,226 BTC, valued at approximately $41.4 billion as of this week.
Despite tightening market conditions and the rising costs associated with raising capital, analysts suggest there are no signs Strategy will slow down its aggressive Bitcoin buying strategy. The company has consistently demonstrated a long-term conviction in Bitcoin, viewing it as a core asset and a hedge against inflation.
Saylor: Bitcoin Poised for Strong Upside
Addressing market sentiment at the Future Proof Citywide event in Miami, Strategy’s co-founder and Executive Chairman Michael Saylor weighed in on Bitcoin’s recent price retreat and broader macroeconomic pressures.
Saylor acknowledged that shifting expectations around interest rate cuts, rising tariffs, and lingering economic uncertainty have pushed financial markets into a “macro, risk-off zone”, dampening investor appetite for speculative assets like Bitcoin.
However, he remained confident that these conditions are temporary. “When that flips,” Saylor remarked, “I think Bitcoin will rip forward with a vengeance.”
Quick Facts:
- Strategy plans to issue 5 million shares of Series A Perpetual Preferred Stock (Strife) at $100 per share.
- The stock offers a 10% annual dividend, payable quarterly, with rates compounding up to 18% if unpaid.
- Proceeds will support Strategy’s Bitcoin acquisition, adding to its 499,226 BTC holdings.
