Strategy Announces 10% Preferred Stock Offering to Expand Bitcoin Holdings
Strategy has unveiled plans to issue perpetual preferred stock priced at $85 per share, offering a 10% coupon rate. This latest offering aims to raise approximately $711 million, which the company intends to use for further Bitcoin (BTC) acquisitions.
Attracting Investors from Bond Markets
Market analyst Jesse Myers noted that the offering’s annual dividend yield of 11.8% positions Strategy favorably against traditional bond markets, which currently offer around 4.2% interest. This competitive yield could attract investors seeking higher returns.
Recent Bitcoin Purchases and Holdings
On March 17, Strategy acquired an additional 130 BTC, valued at approximately $10.7 million. This purchase brought the company’s total Bitcoin holdings to 499,226 BTC, worth around $41.8 billion. Despite being the smallest purchase on record, Strategy co-founder Michael Saylor has indicated plans to continue raising capital through debt and equity sales to expand the company’s Bitcoin reserves.
Strategy’s Ambitious Capital-Raising Plans
Earlier in March, Strategy announced its intention to periodically sell shares of its 8% Series A perpetual preferred stock, aiming to raise an additional $21 billion for Bitcoin purchases. On March 18, the company followed through by offering a tranche of 5 million shares in Series A perpetual preferred stock.
Investment Performance and Stock Price Movement
According to data from SaylorTracker, Strategy remains profitable on its Bitcoin investment, with approximately 26% gains and over $8.6 billion in unrealized profits, despite recent market volatility.
However, Strategy’s stock price has experienced significant fluctuations:
- Shares declined over 26% from their January 2025 peak.
- Stock price dropped more than 44% from its all-time high of around $543 on November 21.
- Currently trading around $299, shares have recovered approximately 29% from the recent low of $231 recorded on March 11.
Strategy’s inclusion in the Nasdaq 100 index has provided additional capital inflows but also exposed the company to broader tech market downturns.
Quick Summary
- Strategy issues preferred stock at $85 per share with a 10% coupon.
- Plans to raise $711 million to fund further Bitcoin acquisitions.
- Currently holds 499,226 BTC, valued at $41.8 billion.
- Stock price volatility continues amid broader market conditions.
