Strategy Supercharges $1B Preferred Stock Offering to Bolster Bitcoin Holdings

Strategy Expands Preferred Stock Offering to $1 Billion, Aims to Bolster Bitcoin Holdings

In a strategic move, Strategy, formerly known as MicroStrategy, has announced an expansion of its perpetual Stride preferred stock (STRD) offering from $250 million to $1 billion. The company has also revised the pricing, offering shares to the public at $85 each.

The STRD offering will pay investors a 10% non-cumulative dividend and represents the third preferred stock product launched by Strategy this year, joining the company's STRF and STRK offerings. Each product features distinct characteristics, with STRD differing in redemption options and dividend accrual terms.

According to company statements, the $979 million in proceeds from the STRD offering will be used to expand Strategy's substantial Bitcoin holdings, which currently total 580,995 BTC valued at $60.9 billion.

Michael Saylor, co-founder and Executive Chairman, has positioned STRD as the company's "high-yield credit instrument," offering greater returns than the STRK and STRF products. During a recent presentation, Saylor shared data suggesting STRD exhibits limited sensitivity to Bitcoin price fluctuations, potentially offering investors some protection against cryptocurrency volatility.

This latest financial maneuver demonstrates Strategy's continued commitment to the digital asset space as the cryptocurrency market evolves. The company's aggressive expansion of preferred stock offerings and Bitcoin acquisitions reinforces its position as a major institutional player in cryptocurrency investment.