Strategy to Issue 5M Series A Shares to Expand Bitcoin Holdings
Strategy announced plans to issue 5,000,000 shares of its Series A Perpetual Strife Preferred Stock to expand its Bitcoin holdings under prevailing market conditions.The public offering, registered under the Securities A...
Strategy announced plans to issue 5,000,000 shares of its Series A Perpetual Strife Preferred Stock to expand its Bitcoin holdings under prevailing market conditions.
The public offering, registered under the Securities Act of 1933, follows the company’s broader strategy of leveraging equity markets to bolster its Bitcoin reserves.
Strategy intends to use the net proceeds for general corporate purposes, particularly to acquire more Bitcoin and support working capital.
Strategy today announced the launch of $STRF ("Strife"), a new perpetual preferred stock offering, available to institutional investors and select non-institutional investors. For more information, click here. $MSTR https://t.co/XM7XbMepEY
— Michael Saylor (@saylor) March 18, 2025The preferred stock carries a 10% annual cumulative dividend, payable quarterly beginning June 30, 2025.
Unpaid dividends will initially compound at 11%, increasing annually up to 18%. The liquidation preference per share starts at $100, subject to market-based adjustments.
Morgan Stanley, Barclays, Citigroup, and Moelis & Company are managing the offering.
The announcement coincides with Bitcoin trading around $80,000 and rising concerns over President Donald Trump’s economic policies.
Inside Strategy’s Preferred Stock Offering and Bitcoin PlansThe Series A Perpetual Strife Preferred Stock is designed to attract investors while offering Strategy financial flexibility.
Each share earns a fixed 10% annual dividend, paid quarterly. Missed dividends will compound, starting at 11% and increasing by 1% annually up to 18%.
Strategy today announced the launch of $STRF ("Strife"), a new perpetual preferred stock offering, available to institutional investors and select non-institutional investors. For more information, click here. $MSTRhttps://t.co/YxNmogceGq
— Strategy (@Strategy) March 18, 2025If outstanding shares drop below 25% of the original issue or certain tax events occur, Strategy may redeem all shares at liquidation preference plus accrued dividends.
Shareholders may also require Strategy to repurchase shares if a “fundamental change” takes place.
Market-based adjustments to the liquidation preference ensure the preferred stock remains competitive.
Morgan Stanley, Barclays, Citigroup, and Moelis & Company will serve as joint book-running managers, handling the execution of the sale.
Strategy’s Bitcoin Accumulation Strategy and Market TrendsThis equity issuance continues Strategy’s aggressive approach of using public offerings to fund Bitcoin acquisitions.
In March, Strategy announced a $21 billion ATM preferred stock offering to boost its Bitcoin reserves.
@Strategy launches a $21B preferred stock offering, doubling down on its Bitcoin investment strategy amid market uncertainties.#Bitcoin #Crypto $STRK https://t.co/PHQ39Ceixs
— Cryptonews.com (@cryptonews) March 10, 2025Strategy is among the largest corporate holders of Bitcoin, using capital markets to fund its accumulation strategy.
The offering arrives during market uncertainty, with Bitcoin hovering above $80,000 amid concerns about President Trump’s economic policies.
Source: CryptonewsStrategy’s stock has fallen over 5% in the past 24 hours. Michael Saylor, Strategy’s co-founder, remains a vocal advocate of Bitcoin as a store of value.
He attended the recent White House Crypto Summit. There, Saylor unveiled a long-term digital asset strategy he claimed could generate up to $100 trillion for the U.S. economy within a decade.
Looking forward, Strategy Bitcoin accumulation is not stopping anytime soon, and the company’s aggressive style has been copied by other similar competitors who are now accumulating the current market bottom.
The post Strategy to Issue 5M Series A Shares to Expand Bitcoin Holdings appeared first on Cryptonews.
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