MicroStrategy to Sell $2.1 Billion in Preferred Stock to Boost Bitcoin Holdings

MicroStrategy, operating under its new name Strategy, is advancing plans to sell up to $2.1 billion in preferred stock to further expand its Bitcoin holdings. The offering, facilitated by TD Securities, Barclays Capital, and The Benchmark Company, will be conducted over time through a flexible sales agreement.

The shares being offered are part of Strategy’s 10.00% Series A Perpetual Stock (Nasdaq: STRF), with each share carrying a $100 liquidation preference and a 10% annual dividend, subject to declaration. As of May 21, the stock traded at $100.65. The new shares will mirror the terms of the 8.5 million already outstanding.

This move aligns with Bitcoin reaching a new record high, briefly touching $111,861 before stabilizing near $111,000. Strategy currently holds 576,230 BTC, acquired since August 2020 at an average cost of $69,726 per Bitcoin. At current prices, these holdings are valued at nearly $64 billion, representing a 59% gain over the initial investment.

Bitcoin now accounts for over half of Strategy’s $111.4 billion market cap and remains central to its financial strategy. Proceeds from the offering will be allocated to general corporate purposes and additional Bitcoin purchases, consistent with prior capital raises. No funds will be escrowed.

The offering structure allows Strategy flexibility, with no minimum sales requirement for the agents, who will earn a fee of up to 2% of gross proceeds. Dividend payments remain contingent on available funds and board approval. This approach enables Strategy to adapt to market conditions while continuing its strategic Bitcoin accumulation.