Strategy Upsizes Stock Offering To $711m, Plans More Bitcoin Buys

Strategy, formerly known as MicroStrategy, has raised $711.2 million through an upsized preferred stock offering, with most of the funds earmarked for additional Bitcoin purchases.

The company priced its 10.00% Series A Perpetual Strife Preferred Stock at $85 per share, offering 8.5 million shares. The sale is expected to close on March 25, pending standard regulatory conditions.

Initially set at $500 million, the offering was increased due to strong investor demand.

Net proceeds, after deducting underwriting fees and offering expenses, are estimated at $711.2 million. 

Strategy stated that the funds would be used for “general corporate purposes, including the acquisition of bitcoin and for working capital.”

The preferred shares feature a 10% annual dividend, paid quarterly in cash. If Strategy misses a dividend payment, compounded dividends will accrue at an increasing rate, starting at 11% and rising by 1% each quarter, up to a maximum of 18% per year.

The company retains the right to redeem all outstanding preferred shares if fewer than 25% of the originally issued shares remain or if specific tax-related events occur. Holders will also have the right to demand repurchase if a “fundamental change,” such as a change in control, takes place.

This marks Strategy’s second major capital raise in recent weeks. On March 17, the company disclosed it had purchased 130 BTC for $10.7 million using proceeds from an earlier preferred stock sale.

Strategy has aggressively pursued a Bitcoin (BTC) treasury strategy since 2020, converting its balance sheet into BTC. 

“We strategically accumulate Bitcoin and advocate for its role as digital capital,” the company stated. The firm also continues to develop AI-powered enterprise analytics tools alongside its Bitcoin holdings.