Strategy to Raise Over $710M to Buy Bitcoin; Here’s How Much BTC It Can Purchase

Strategy, the largest corporate Bitcoin holder, seeks to raise over $710 million through the issuance of high-yield preferred stock to expand its BTC holdings. 

In a press release today, Strategy (formerly MicroStrategy) unveiled the pricing for its Strife Perpetual Preferred Stock ($STRF) offering. According to the announcement, the firm will offer 8.5 million of its 10% Series A STRF later this month, each sold at $85. 

Notably, Strategy scheduled the sale of these shares for March 25, 2025, subject to standard closing conditions. Before this announcement, the initial target proceeds were $500 million. However, it has made some adjustments, raising the target to $722.5 million.  

Strategy announces pricing of its Strife Perpetual Preferred Stock ($STRF) Offering and upsizes the deal from $500M to $722.5M $MSTR https://t.co/GJVCRwIQ0Y

— Michael Saylor⚡️ (@saylor) March 21, 2025

Following tax and other expense deductions, the company is expected to net about $711.2 million. Per the announcement, Strategy will utilize the proceeds for general corporate purposes, including expanding its Bitcoin portfolio. 

If Strategy decides to buy Bitcoin using the entire net proceeds, it will acquire 8,467 BTC at the current exchange rate of $83,990 per BTC. 

STRF Dividends 

Meanwhile, holders of the STRF stock will receive cumulative dividends at an annual fixed rate of 10%, calculated based on $100 per share, according to the press release. 

The company intends to pay dividends by the end of each quarter, starting June 30, 2025, so long as the board declares them. However, if dividends are unpaid as scheduled, it will generate additional proceeds with a per annum increase of 1%, up to a maximum of 18%. 

Furthermore, the announcement identified financial institutions such as Citigroup, Morgan Stanley, SG Americas Securities, and Barclays Capital as joint-book running managers of the offering.

Financial institutions like Bancroft Capital, AmeriVet Securities, The Benchmark Company, and BTIG will also serve as co-managers of the offering.

Strategy Bitcoin Accumulation Efforts 

Strategy offers different debt instruments to raise funds to finance its Bitcoin purchase. The company has been utilizing this strategy to grow its Bitcoin holdings since initiating its first BTC purchase in August 2020. At the moment, it has a portfolio containing 499,226 BTC, valued at approximately $41.93 billion.

Notably, the latest offer aligns with its efforts to raise $42 billion over the next three years under a ‘21/21 plan’ to fund future Bitcoin purchases. 

The plan, introduced last year, aims to generate the $42 billion through the sales of $21 billion in equity and fixed-income instruments worth $21 billion. As of early January, Strategy had already raised $7.5 billion through the initiative.