Strategy, the world’s largest corporate Bitcoin holder, announced on May 22, 2025, a plan to raise up to $2.1 billion through an at-the-market (ATM) offering of its 10% Series A Perpetual Strife Preferred Stock (STRF).
The move, disclosed in an SEC filing, aims to fund general corporate purposes, with a strong emphasis on acquiring additional Bitcoin, reinforcing the company’s aggressive crypto treasury strategy.
With Bitcoin trading near $112,000 and Strategy already holding 576,230 BTC valued at over $64 billion, this capital raise signals an unwavering commitment to deepening its cryptocurrency reserves amid a bullish market.
A Strategic Shift to Preferred Stock
Unlike previous funding rounds that relied heavily on convertible notes and common stock sales, Strategy’s latest offering taps perpetual preferred stock, a hybrid instrument offering a 10% annual dividend.
This structure avoids diluting common shareholders’ voting power while providing investors with a high-yield, equity-like investment. The sale will occur gradually under SEC Rule 415(a)(4), allowing Strategy to capitalize on favorable market conditions or execute negotiated block trades.
The 10% dividend reflects both the elevated interest rate environment and the perceived risk of Strategy’s Bitcoin-centric approach, which has drawn both admiration and scrutiny.
Recent sentiment on social platforms highlights speculation of a massive Bitcoin purchase, with some traders viewing this as a catalyst for further BTC price upside.
Did You Know?
Strategy’s Bitcoin holdings surpass those of entire nations, with its 576,230 BTC exceeding El Salvador’s national treasury, making it a dominant force in corporate crypto adoption.
Why Bitcoin? Strategy’s Vision and Market Impact
Strategy’s Bitcoin holdings, acquired at an average price of $69,726 per coin, now represent 2.7% of Bitcoin’s 21 million total supply, with unrealized gains exceeding $23.8 billion.
The company’s latest purchase of 7,390 BTC for $764.9 million between May 12 and May 18 underscores its relentless accumulation strategy, funded through prior stock offerings. This $2.1 billion raise is part of Strategy’s broader “42/42” plan, targeting $84 billion in capital raises by 2027 to fuel Bitcoin acquisitions.
Analysts suggest this move could further cement Strategy’s influence on Bitcoin’s price trajectory, especially as institutional adoption grows, with over 70 companies now holding Bitcoin treasuries. However, a class-action lawsuit filed against Strategy, alleging misrepresentation of Bitcoin investments, adds a layer of risk to its bold strategy.
Risks and Rewards for Investors
The 10% dividend on the STRF stock is attractive in a high-interest-rate environment, but it comes with risks tied to Strategy’s heavy Bitcoin exposure. The company’s analytics software business has not generated positive cash flow recently, raising concerns about its ability to meet financial obligations without relying on Bitcoin’s appreciation.
Social media discussions have raised alarms about Strategy’s $8.2 billion debt and $146.2 million in annual preferred stock dividends, with some speculating that a Bitcoin price crash could force asset sales.
Despite these concerns, the perpetual nature of the stock, no maturity date, offers investors long-term exposure to Strategy’s Bitcoin bet, aligning with its vision of BTC as a superior store of value.
Conclusion
Strategy’s $2.1 billion preferred stock offering marks a pivotal moment in its mission to transform its balance sheet into a Bitcoin reserve, capitalizing on the cryptocurrency’s 2025 rally.
While the 10% dividend and perpetual structure appeal to yield-seeking investors, the risks tied to Bitcoin’s volatility and Strategy’s financial obligations loom large.
As the company continues to shape the corporate Bitcoin landscape, traders and investors should monitor BTC’s price action and Strategy’s stock performance closely. Trade and invest at your own risk.
Comments (0)
Please sign in to leave a comment