Key Takeaways
- Strategy plans to offer up to $21 billion in preferred stock to expand its Bitcoin holdings.
- The company uses various financing methods, such as debt offerings and equity issuances, to fund Bitcoin acquisitions.
- Strategy plans to sell up to $21 billion in 8.00% Series A Perpetual Strike Preferred Stock through an at-market offering, according to a Monday filing with the SEC. The company intends to use the net proceeds from this offering for general corporate purposes, including Bitcoin acquisitions and working capital.
- As detailed in the filing, the Nasdaq-listed company entered into a Sales Agreement with multiple financial institutions, including TD Securities, Barclays Capital, and Cantor Fitzgerald, to manage the stock sale. The preferred shares will trade on the Nasdaq Global Select Market under the ticker “STRK.”
- The offering will be conducted over time through 12 financial institutions acting as sales agents, who will receive up to 2% of gross proceeds.
- The preferred stock carries an 8.00% annual dividend based on a $100 per share liquidation preference, paid quarterly on March 31, June 30, September 30, and December 31. Shareholders can convert their preferred shares into Class A common stock at a rate of $0.1000 Class A shares per preferred share, with an initial conversion price of $1,000 per Class A share.
- The offering marks another move by Strategy to increase its Bitcoin Treasury position. The company has previously used debt offerings and equity issuances to fund Bitcoin acquisitions under the leadership of Executive Chairman Michael Saylor, who has championed Bitcoin as a Treasury reserve asset.
- Earlier this year, Strategy announced a plan to raise $2 billion through stock offerings to fund more Bitcoin purchases as part of their “21/21 Plan.”
- The 21/21 plan is the company’s strategic initiative to raise a total of $42 billion over three years, including $21 billion in equity and $21 billion in fixed-income instruments. The goal is to use the raised capital to acquire more Bitcoin, further solidifying its position as the world’s largest Bitcoin Treasury Company.
- As of early 2025, Strategy had already raised $15 billion through equity and $3 billion via convertible debt. The company is shifting its focus toward fixed-income issuances this year.
- Strategy currently holds 499,096 BTC, valued at $41.5 billion at current market prices.
