Michael Saylor's Strategy Funding More Bitcoin Purchases With New Preferred Stock

11 hours ago 7

The world's largest corporate holder of bitcoin is looking to raise around $500 million in an offering of Perpetual Preferred Strife Stock.

Mar 18, 2025, 2:12 p.m. UTC

Strategy (MSTR) Tuesday morning unveiled its latest twist at raising funds from capital markets to fund additional bitcoin (BTC) purchases, but there are indications the Wall Street spigot is slowing.

The company's Perpetual Strife Preferred Stock (STRF) offers a fixed 10% annual cash dividend, paid quarterly, according to an SEC filing If dividends are unpaid, they compound at an additional 1% per year (quarterly), up to a maximum of 18%. The first dividend payment is scheduled for June 30, 2025.

Strategy's initial preferred series (STRK) initially offered only an 8% interest rate. And Strategy's series of convertible debt offerings came with negligible or even 0% interest rates (different product than preferred, of course).

Unlike common stock, STRF holders do not have voting rights but have priority in liquidation with a $100 per share liquidation preference. Strategy has the right to redeem STRF if fewer than 25% of the original shares remain or if tax events occur, while holders can demand a buyback in case of a fundamental change.

STRF is expected to trade on Nasdaq within 30 days of issuance, offering investors bitcoin exposure with

a high-yield structure. Morgan Stanley, Barclays, Citigroup, and Moelis & Company are joint book-running managers for the offering, conducted under an SEC shelf registration.

After buying bitcoin at a galloping pace over the past several months, Strategy's fundraising and token acquisitions have slowed to a crawl in recent weeks. The company last week did make additional bitcoin purchases, but they were hardly needle-moving — just 130 BTC for $10.7 million to bring total holdings to 499,226 tokens.

MSTR is lower by 5% in early action Tuesday alongside a slide in markets in general and bitcoin's dip to $81,300 from $84,000 a day ago.

James Van Straten

James Van Straten is a Senior Analyst at CoinDesk, specializing in Bitcoin and its interplay with the macroeconomic environment. Previously, James worked as a Research Analyst at Saidler & Co., a Swiss hedge fund, where he developed expertise in on-chain analytics. His work focuses on monitoring flows to analyze Bitcoin's role within the broader financial system. In addition to his professional endeavors, James serves as an advisor to Coinsilium, a UK publicly traded company, where he provides guidance on their Bitcoin treasury strategy. He also holds investments in Bitcoin, MicroStrategy (MSTR), and Semler Scientific (SMLR).

James Van Straten

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