Strategy Eyes 3% of All Bitcoin with New $500M Equity Raise
Strategy, the company led by Bitcoin bull Michael Saylor, is ramping up efforts to increase its Bitcoin holdings by offering up to $500 million in preferred equity. The company recently announced a fresh $5 million offering of its new Series A Perpetual “Stretch” Preferred Stock, offering a 9% dividend rate. According to insiders, these shares are now being offered at a 10% discount, priced between $90–$95, down from their original $100 listing.
In a post on X (formerly Twitter), Saylor introduced the new security, $STRC “Stretch”, as a novel way for certain investors to gain exposure through an IPO. The move is part of Strategy’s larger effort to fund massive Bitcoin acquisitions.
Stretch Preferred Stock: A New Kind of Crypto-Backed Security
The Stretch securities feature adjustable cumulative dividends, giving Strategy flexibility to increase the rate monthly. The dividend can be increased at will, but any decrease is capped at 0.25% annually or tied to the one-month SOFR rate. This model differentiates Stretch from the company’s previous preferred offerings like Strike and Stride.
Sources say that Barclays, Moelis & Co., TD Securities, and Morgan Stanley are managing the offering, with initial pricing expected Thursday.
Controlling 3% of All Bitcoin in Circulation
Strategy’s aggressive purchasing has made it the largest corporate holder of Bitcoin, with 607,770 BTC, worth nearly $72 billion — approximately 3.05% of all Bitcoin ever issued. Recent disclosures to the U.S. SEC revealed the firm added 6,220 BTC last week alone, valued at $739.8 million.
Since 2020, Strategy has leveraged common shares, preferred stock, and convertible debt to accumulate BTC — a strategy aimed at hedging against inflation and solidifying its crypto dominance.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
