Strategy (NASDAQ: MSTR), known for holding a large amount of Bit Coin, announced on June 2, 2025, plans to raise $250 million through issuing new perpetual preferred stock, primarily to increase its already substantial BTC reserves. This move again highlights its executive chairman Michael Saylor's strategy of viewing Bit Coin as a core reserve asset.
Preferred Stock Issuance Details and Fund Usage
According to Strategy's announcement that day, the planned stock issuance is 10.00% Series A Perpetual Stride Preferred Stock, with stock ticker STRD. The company plans to issue 2.5 million STRD shares through an initial public offering (IPO), priced at $100 per share, with a fundraising target of $250 million. The preferred stock offers a 10% annual cash dividend, but is "non-cumulative" and must be declared by the board or its authorized committee; if not declared, the dividend will not accumulate. If declared, the first dividend is expected to begin on September 30, 2025, and will be paid at the end of each fiscal quarter. Strategy indicates that the net proceeds will be used for general corporate purposes, primarily for acquiring additional Bit Coin and supplementing operating capital.
Bit Coin Position
Strategy is currently the listed company holding the most Bit Coin globally, with approximately 580,955 BTC, valued at over $61 billion based on the current Bit Coin price of around $106,000, more than twice the total of all other listed companies holding Bit Coin. Based on the Bit Coin price of about $106,325 at the time, these $250 million in funds could theoretically purchase around 2,351.8 Bit Coin. This is the latest financing tool Strategy has used for its Bit Coin acquisition strategy, following the issuance of common stock and convertible notes. Recently, Strategy raised about $75 million through previously issued preferred stock, purchasing 705 BTC, bringing its overall holding's average cost to approximately $70,023/BTC, with the recently purchased batch averaging around $106,495/BTC.
Michael Saylor also recently stated that the strategy has sparked explosive imitation globally and, in an interview with CNBC, said "orange is the best color":
Bit Coin is the best capital. The more participants enter the ecosystem, the more diverse the protocol becomes, the more distributed it becomes, the more clean it becomes, the stronger it becomes. This means it becomes more trustworthy for large economic participants, otherwise they would be afraid to put all their economic weight on the network.
