In a major move that deepens its commitment to digital assets, Strategy has announced the issuance of up to $2.1 billion in Series A perpetual preferred stock.
The company intends to put the money to work expanding its Bitcoin holdings and fortifying its investment operations. The news underlines what now seems an unstoppable path for Bitcoin to financial respectability and highlights an increasingly aggressive push by Strategy into the digital finance arena.
The recently issued shares, trading under the symbol STRF, opened for trading on the Nasdaq Global Select Market on May 21, at an initial offering price of $100.65. They are being offered by Starwood Property Trust, Inc., a real estate investment trust.
A Preferred Offering With a Strong Yield
The preferred shares, known as Series A perpetual preferred stock, carry a 10% interest rate, making them very enticing to investors looking for income. As a perpetual security, STRF does not have a maturity date, making it more akin to an equity instrument than to traditional corporate debt.
The strong yield reflects Strategy’s willingness to pay a premium for capital—access to which has somehow eluded its poorer, common shareholders—as it works to establish a bigger foothold in the crypto markets.
The offering is being underwritten by leading financial institutions, such as TD Securities, Barclays Capital, and Benchmark. Their participation adds to the deal’s credibility and sends a message that large, traditional financial firms have no problem facilitating fundraising that ties Bitcoin to anything but a dark alley.
Using preferred stock gives us a strategic advantage: it lets us avoid diluting common equity, and thereby preserve, at least for now, our main constituents’ (i.e., our shareholders’) stake in our company. What’s more, we can raise huge amounts of capital with preferred stock.
Bitcoin-Centric Investment Strategy Continues
Funds raised through the offering will be put to work in “business and investment activities,” with Bitcoin purchases called out as a major intended use of the capital. This allocation meshes with the investment thesis we have held since Bitcoin was first added to the Strategy, which sees the cryptocurrency as a long-term store of value and, increasingly, as an inflation hedge.
In the past, the company has made news for switching a large part of its corporate treasury into Bitcoin and, in the process, has effectively positioned itself as a hybrid between a technology firm and a digital asset holding company. With the issuance of $2.1 billion in fresh capital, the firm seems to be doubling down on its conviction — potentially purchasing thousands more BTC depending on market prices.
Strategy phát hành 2,1 tỷ USD cổ phiếu ưu đãi để mua thêm Bitcoin
Strategy vừa thông báo sẽ phát hành cổ phiếu ưu đãi vĩnh viễn Series A với lãi suất 10% (mã: #STRF), tổng giá trị tối đa 2,1 tỷ USD.
Các đơn vị bảo lãnh phát hành bao gồm TD Securities,… https://t.co/QUyPMFwdFd pic.twitter.com/PB0NTvcGJY
— Blog Tiền Ảo (@blogtienao_hq) May 23, 2025
This method is not untested. Other public companies, such as MicroStrategy, have used similar tactics when dealing in Bitcoin, raising money via capital markets to buy up a lot of the cryptocurrency. What sets Strategy apart is its use of high-yield preferred equity, rather than standard debt, to get this deal done—especially given the rising rates environment.
Market Reaction and Strategic Implications
STRF’s initial share price of $100.65 indicates a robust interest from investors in the offering, especially among those seeking reliable, fixed-income returns in today’s shaky macroeconomic climate. The preferred shares’ 10% yield, well above the rates on most corporate bonds and many old-school, dividend-paying stocks, make for a very attractive income-generating security.
This capital increase marks a new phase of institutional Bitcoin adoption. By using public markets to raise billions to buy Bitcoin, Strategy is helping to establish the cryptocurrency as a balance sheet asset for big companies. And as with so much else in the crypto universe, it all comes down to, well, down payments. For the human side of it, the big news this quarter is that Bitcoin is hitting the balance sheets of actual companies.
In the future, analysts will pay close attention to the deployment of capital, the acquisition of Bitcoin, and the trading performance of STRF in order to ascertain how market participants are likely to respond. Other firms might be nudged by this development to look into similarly inspired financing arrangements as a way to gain exposure to digital assets.
Conclusion
Strategy has issued $2.1 billion in high-yield preferred stock—a landmark event, not just for the company but for the digital asset ecosystem. It is a shining example of the convergence of traditional finance and cryptocurrency.
Institutional underwriters, a healthy interest rate, and a specific desire to accumulate BTC make Strategy a clear bullish bet on a Bitcoin future. And the future its backers are betting on is one in which Bitcoin is a central player.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Source: https://nulltx.com/strategy-taps-markets-for-2-1-billion-in-preferred-shares-to-expand-bitcoin-holdings/