On March 21, 2025, %Strategy (NASDAQ: $MSTR), the %Bitcoin (CRYPTO: $BTC) treasury company formerly known as MicroStrategy, announced the pricing of its upsized Series A Perpetual Strife Preferred Stock (STRF) offering, raising $722.5 million. This move marks another bold step in the company’s aggressive strategy to bolster its already massive Bitcoin holdings, reinforcing its position as the world’s largest corporate holder of the %Cryptocurrency.
A Strategic Leap in Bitcoin Investment
Initially set at $500 million, the STRF offering was increased to $722.5 million due to strong investor demand, according to the company’s announcement. Strategy priced 8.5 million shares at $85 each, with the offering expected to close on March 25, subject to standard conditions. The perpetual preferred stock comes with a hefty 10% annual dividend, paid quarterly in cash, making it an attractive option for investors seeking yield in a volatile market.
The net proceeds, estimated at approximately $711.2 million after fees, will be directed toward general corporate purposes, with a significant portion earmarked for acquiring additional Bitcoin. This aligns with Strategy’s long-standing vision, championed by co-founder and executive chairman Michael Saylor, to transform the company into a Bitcoin-centric treasury while maintaining its roots in AI-powered enterprise analytics.
Building a Bitcoin War Chest
Strategy’s Bitcoin accumulation strategy has been nothing short of relentless. Just days before the pricing announcement, on March 17, the company acquired 130 BTC for $10.7 million at an average price of $82,981 per coin—a relatively modest purchase compared to its prior multi-billion-dollar buys. With that acquisition, Strategy’s total Bitcoin holdings reached 499,226 BTC, valued at over $41 billion based on current market prices. The company’s average purchase price stands at $66,360 per Bitcoin, reflecting a total investment of roughly $33.1 billion, including fees and expenses.
The upsized $722.5 million offering is poised to push Strategy’s Bitcoin stash past the symbolically significant 500,000 BTC threshold in the near future. This move underscores the firm’s unwavering belief in Bitcoin as a long-term store of value and a hedge against inflation, even as the cryptocurrency market experiences periodic turbulence.
A Unique Financial Play
The STRF offering is notable for its “perpetual” structure, meaning it has no maturity date and cannot be converted into common shares—unlike some of Strategy’s previous financing vehicles. This distinguishes it from the company’s earlier $584 million preferred stock offering in January (traded under the ticker STRK) and its $10 billion-plus in convertible bonds raised over the past year. The perpetual nature, combined with the 10% dividend, appeals to income-focused investors while allowing Strategy to retain flexibility in its capital structure.
The company retains the right to redeem all outstanding STRF shares under specific conditions, such as if fewer than 25% of the originally issued shares remain or if certain tax-related events occur. This built-in flexibility ensures Strategy can adapt to changing market dynamics while continuing its Bitcoin-focused mission.
Market Reception and Implications
Investor enthusiasm for the upsized offering suggests confidence in Strategy’s hybrid model, which blends Bitcoin treasury management with its legacy software business. Since the STRK preferred shares began trading on February 1, they have outperformed both Bitcoin and Strategy’s common stock (MSTR), which has seen a -16.44% decline in the same period. Meanwhile, Bitcoin itself has dropped approximately -19% since early February, highlighting the appeal of Strategy’s preferred stock as a way to gain exposure to the company’s Bitcoin strategy with less direct volatility.
However, not everyone is sold on Strategy’s approach. Critics argue that tying a company’s fortunes so closely to a volatile asset like Bitcoin carries significant risks. With a current ratio of 0.71, Strategy’s short-term liquidity challenges could intensify if Bitcoin prices falter or if its software business fails to generate sufficient cash flow to support its ambitious dividend obligations—potentially totaling $108.4 million annually across its preferred stock offerings.
The Bigger Picture
Strategy’s latest financial maneuver comes amid a broader shift in the corporate and regulatory landscape for Bitcoin. The U.S. government, under the Trump administration, has signaled a pro-crypto stance, including plans for a Strategic Bitcoin Reserve. While Bitcoin’s price has yet to react dramatically to such developments, Strategy’s aggressive accumulation positions it as a potential beneficiary of any long-term bullish trend.
For Michael Saylor and Strategy, the $722.5 million STRF offering is more than just a fundraising event—it’s a statement of intent. As the company continues to leverage equity markets to expand its Bitcoin war chest, it’s clear that Strategy is betting big on a future where Bitcoin plays a central role in corporate finance. Whether this gamble pays off will depend on the cryptocurrency’s trajectory and Strategy’s ability to navigate the risks ahead. For now, the market watches closely as Strategy pushes the boundaries of corporate Bitcoin adoption.
