MicroStrategy (MSTR) has announced an expanded offering of preferred shares worth up to $2.1 billion, signaling a bold new step in its continued strategy to accumulate Bitcoin (BTC) and fund operational costs. The move comes as part of the company’s ongoing efforts to leverage capital markets in support of its aggressive cryptocurrency investment strategy.
In a statement released recently, MicroStrategy confirmed plans to offer a significant amount of Series A Preferred Stock under the name Stride (STRD). Initially, the offering was aimed at raising $250 million, but the company has now increased that target to $1 billion. If market conditions and investor interest allow, MicroStrategy may further raise an additional $1.1 billion, bringing the total offering to $2.1 billion.
The company plans to issue 2.5 million STRD preferred shares to the public. Depending on final pricing and approvals, MicroStrategy may initially offer 10% of those as Series A shares under the STRD ticker symbol.
The offering will place 11,764,700 Series A Perpetual Preferred Stride shares on the market, each carrying a fixed annual dividend yield of 10.00%. The proceeds from this raise are intended not only to fund operational needs but also to directly increase MicroStrategy's Bitcoin holdings, a strategy the company has consistently pursued since 2020.
Though STRD shares will not provide investors direct ownership in Bitcoin, MicroStrategy has stated that funds from the sale will be used for general corporate purposes including further BTC acquisitions. This makes the offering a compelling opportunity for those who want to gain exposure to Bitcoin through a more traditional equity instrument.
Furthermore, MicroStrategy confirmed that the offering will comply with regulations and has been filed with the U.S. Securities and Exchange Commission (SEC). The company emphasized that the decision to expand the offering was influenced by recent strong performance in its core Bitcoin investment strategy, which has significantly boosted shareholder returns.
Strategic Implications
This move reinforces MicroStrategy’s position as the largest publicly traded corporate holder of Bitcoin. By issuing preferred shares with a fixed yield, the company can attract income-focused investors while maintaining flexibility to pursue its long-term crypto vision.
Moreover, the expansion of this offering sends a clear message: MicroStrategy is not backing down from its Bitcoin strategy, even amidst market volatility. Instead, it’s doubling down leveraging sophisticated capital instruments to further cement its stake in the future of decentralized finance.