TL;DR
- Strategy, under the leadership of Michael Saylor, has quadrupled its preferred stock offering (STRD) to raise nearly $1 billion.
- The proceeds will be used primarily to purchase more Bitcoin, without resorting to debt or diluting common shares.
- This bold and calculated move strengthens its model of using Bitcoin as a strategic reserve asset, amid a context of growing institutional demand for direct exposure to cryptocurrencies.
The company, known as the world’s largest corporate holder of Bitcoin, announced on June 6 that it will significantly expand its most recent stock offering. Increasing from the initially planned $250 million to nearly $1 billion, the company will sell 11,764,700 shares of its Series A Perpetual Stride Preferred Stock (STRD) at a public price of $85 per share.
This issuance involves neither new debt nor dilution of existing common shares, a structure that has attracted institutional investors such as the Central Bank of Saudi Arabia and the firm Cantor, which already holds a stake valued at over $300 million. The STRD securities offer a fixed annual return of 10% with no management fees, an uncommon and highly attractive feature in traditional financial markets.
Bitcoin as a Strategic Corporate Asset
With Bitcoin trading around $104,000, the raised capital would allow Strategy to acquire approximately 9,600 additional BTC. This figure sharply contrasts with its most recent purchase on June 2, when it acquired 705 BTC for $75 million. If completed, the acquisition would further cement Strategy’s role as a pioneer in integrating crypto into the corporate balance sheet, drawing in more institutional players seeking direct exposure.
Saylor’s model is clear: to transform Bitcoin into a superior store of value compared to cash, protecting against inflation while positioning for a shift in the traditional financial landscape. According to VanEck, Strategy’s market valuation trades at a 112% premium over the combined value of its Bitcoin holdings and core software business, signaling that the market anticipates sustained accumulation of crypto assets.
A High-Yield Move with a Forward-Looking Vision
The STRD product differs from previous offerings like STRF and STRK by providing the highest annual yield, though with higher risk. It does not accumulate unpaid dividends and cannot be redeemed at will, making it attractive for investors seeking fixed income without foregoing Bitcoin’s long-term upside.
Saylor’s vision is to turn Strategy into an institutional vehicle for acquiring BTC without the operational costs typical of ETFs or crypto funds. While others hesitate, Strategy executes, and expands, its bet with conviction, precision, and unmatched strategic clarity.
