Strategy, the world’s largest institutional holder of Bitcoin, is once again making waves in the crypto and financial world. According to a Bloomberg report, the business intelligence company, led by Executive Chairman Michael Saylor, has announced an expansion of its preferred stock offering from $500 million to $2 billion. This move aims to raise fresh capital to buy even more bitcoin (BTC), continuing a bold strategy that has defined the company’s recent years.
Strategy’s New Debt Offering
The new offering, called Series A Perpetual Stretch shares, is priced at $90 per share, which is a 10% discount from the $100 face value. Investors who purchase these shares will receive a 9% annual dividend, making it an attractive option for those seeking high-yield returns. Additionally, the shares are designed to rank senior to Strategy’s previously issued preferred stock, offering investors more security if the company ever faces financial difficulties.
Top-tier financial institutions, including Morgan Stanley, Barclays PLC, Moelis & Co., and TD Securities, are managing the offering. The significant increase in the offering’s size, from half a billion to two billion dollars, signals strong investor demand, especially from those seeking exposure to Bitcoin through a trusted institutional vehicle without directly purchasing the digital asset.
Focused on Building Bitcoin Reserves
All proceeds from this funding round will be allocated directly toward purchasing additional Bitcoin. Strategy already holds a massive 607,770 BTC. At current market prices, that hoard is valued at roughly $72 billion, making Strategy the single largest Bitcoin-holding institution in the world.
This move continues a pattern that began in 2020, when the company started shifting its treasury reserve strategy toward Bitcoin. Since then, Strategy has raised money through standard stock offerings, convertible notes, and preferred shares, all aimed at deepening its Bitcoin holdings.
While some may have questioned the risks of such an aggressive approach, Saylor and his team have remained consistent, seeing BTC as a long-term store of value and believing that holding large amounts will benefit shareholders over time, especially as global interest in digital assets continues to grow.
