- Strategy increased its preferred equity raise to $2B, pricing Series A shares at $90 with a 9% dividend.
- The company owns over 607,000 BTC, worth $72B, accounting for more than 3% of all Bitcoin mined.
- Strategy’s stock is up 3,500% since 2020, vastly outperforming Bitcoin and the S&P 500.
Strategy, the largest corporate Bitcoin holder, has ramped up its preferred equity sale from $500 million to $2 billion, citing robust investor demand. According to Bloomberg, this capital raise will further fuel the company’s aggressive Bitcoin accumulation strategy. The Series A Perpetual Stretch preferred shares will be priced at $90 each, below their $100 face value, and will offer a 9% initial dividend.
Michael Saylor’s Bold Bitcoin Play
Led by Michael Saylor, Strategy plans to finalize pricing on Thursday in New York with Morgan Stanley, Barclays, Moelis & Company, and TD Securities facilitating the raise. The new preferred shares will rank higher than common stock and other preferreds like Strike and Stride but remain below the older Strife preferreds and convertible bonds. Proceeds will be directed toward purchasing more Bitcoin, cementing Strategy’s reputation as the corporate Bitcoin giant.
Strategy’s Bitcoin Holdings and Market Performance
The company recently acquired 6,220 BTC for $740 million, bringing its total Bitcoin holdings to 607,770 BTC, valued at approximately $72 billion. This means Strategy now controls over 3% of all Bitcoin ever mined.
Since it began its Bitcoin acquisition strategy in 2020, Strategy’s stock has skyrocketed over 3,500%, while Bitcoin itself has risen around 1,100%. For comparison, the S&P 500 gained only about 120% during the same period.
