Originally targeting $500 million, the company saw such strong demand for the offering that it expanded the sale, ultimately raising more than anticipated.
The capital raised will primarily be used to bolster the company’s Bitcoin holdings, an ongoing initiative championed by Saylor. Known for his bullish stance on cryptocurrency, particularly Bitcoin, Saylor’s firm now holds over 499,200 Bitcoin, a stash valued at more than $33 billion. The new funds will push the company even closer to owning 500,000 Bitcoin.
The Series A Perpetual Strife Preferred Stock is an unconventional offering, carrying a 10% annual dividend. Unlike previous funding rounds, this stock does not come with conversion options into common stock but does feature a cumulative dividend structure. These dividends will accumulate quarterly, with compounded growth based on the time the stock is held.
This funding round marks a shift in the way Strategy funds its Bitcoin acquisitions. The company has historically raised funds through senior notes but is now turning to preferred stock to avoid excessive debt while still increasing its Bitcoin reserve. Strategy’s strategy of leveraging its corporate capital to purchase Bitcoin remains a key component of its long-term vision, with the firm continuing to make regular Bitcoin acquisitions.
As the company nears the significant milestone of owning half a million Bitcoin, its growing influence in the crypto market under Saylor’s leadership is undeniable. The fresh capital raised from this round is set to enhance Strategy’s ongoing commitment to Bitcoin and solidify its place as one of the leaders in cryptocurrency adoption among corporations.
