Strategy Takes Center Stage With $21 Billion Preferred Stock Offering
The new round of Bitcoin acquisitions will increase the company's assets to more than 500,000 tokens.
Author: Steven Alpher Updated March 10, 2025, 1:55 UTC Published March 10, 2025, 12:18 UTC
What you should know:
- Michael Saylor's Strategy (MSTR) floated its preferred stock (STRK) on the market early Monday, raising $21 billion.
- Amid another sharp decline on Sunday, Bitcoin (BTC) jumped by about $1,000 to reach more than $83,000 on the news.
- Strategy currently holds just under 500,000 Bitcoin.
While Michael Saylor's Strategy (STRK) has continued to acquire additional Bitcoin (BTC) in recent weeks, it has stepped up its activities again.
On Monday morning in the US, the company announced a $21 billion Series A preferred stock offering (STRK), the proceeds of which will be used primarily to buy new bitcoins.
The news gave a small boost to Bitcoin, which — amid a fresh panicked fall on Sunday — was trading at just $80,000 just a few hours ago. It is currently changing hands at just over $83,000.
Strategy is currently the largest corporate holder of Bitcoin, holding just under 500,000 tokens, worth approximately $42 billion at Bitcoin's current value.
If MSTR were to fully implement this plan over what is likely to be an extended period of time, the total annual dividend amount would be approximately $1.68 billion. Dividend payments would likely need to be funded through additional common stock capital raisings and/or cash generated from Strategy's operations.
MSTR shares are down 5.5% in premarket trading and about 50% from their late November record.
