Strategy raises equity sale to $2 billion, 4x its original fundraising goal

Strategy, the company run by Executive Chairman Michael Saylor, has boosted its preferred equity sale to $2 billion, four times the initial $500 million, according to Bloomberg.

The company is moving ahead with the sale of its Series A Perpetual Stretch preferred shares , which will be priced at $90 each at noon on Thursday in New York.

That’s a 10% discount from the face value of $100, and the shares will come with an initial 9% dividend, based on information shared ahead of the pricing.

The move is part of Strategy’s broader push to raise cash as it continues buying more Bitcoin.

This offering comes at a time when the company’s stock has surged 42.5% year-to-date, and is trading around $412.31 per share as of 10:58 a.m.

Thursday, putting the company’s market value at $115 billion.

Strategy taps Wall Street banks for expanded offering The offering is being managed by a group of banks, including Morgan Stanley, Barclays, Moelis & Company, and TD Securities.

The sale will include 5 million Stretch shares, a number confirmed by Bloomberg.

These preferred shares are designed to sit above Strategy’s Strike and Stride series, as well as its common stock , but they’ll rank below its Strife series and previous convertible bonds.

What makes this latest offering different from Strategy’s older preferred shares is the dividend structure.

The Stretch shares will pay cumulative dividends, and the rate isn’t fixed.

The company will have the right to raise the dividend by any amount each month or cut it by no more than 0.25% per year plus any fall in the one-month SOFR rate.

This gives Strategy the ability to adjust payouts depending on short-term interest movements.

Bitcoin purchases remain the end goal The cash raised from this $2 billion sale is headed straight into Bitcoin.

Strategy has confirmed that proceeds will be used to increase its crypto holdings, which currently stand at 607,770 coins, worth about $72.4 billion, based on prices listed on the company’s website.

Saylor began buying Bitcoin in late 2020, using a mix of common equity, preferred shares, and debt.

That same method is still being used, and dozens of companies have since followed the same approach.

But none have gone as far as Strategy, which still holds more Bitcoin than any other public company.

Even BlackRock’s iShares Bitcoin Trust ETF (IBIT), which controls around $86 billion in Bitcoin, is behind Strategy in direct holdings.

Bitcoin’s appeal remains tied to its supply cap of 21 million coins, a hard limit coded into the network.

Features like the quadrennial halving events, which cut block rewards for miners every four years, have helped support its scarcity narrative.

The final Bitcoin isn’t expected to be mined until 2140. Strategy’s stock price has risen by more than 3,500% since Saylor first pushed the company into Bitcoin.

Over the same period, Bitcoin itself climbed about 1,100%, while the S&P 500 only managed a 120% gain.

Every part of this capital raise, the expanded share count, the dividend structure, the adjusted pricing, and the use of proceeds, shows that Strategy’s approach hasn’t changed.

The company is using the same aggressive formula: raise capital, buy Bitcoin, and hold.

Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income.

Register Now.

Neueste Nachrichten