Strategy (formerly MicroStrategy) has expanded its preferred stock offering to raise nearly $1 billion for additional Bitcoin acquisitions. The firm priced 11.76 million shares of its 10% Series A Perpetual Stride Preferred Stock (STRD) at $85 each, with an estimated $979.7 million in net proceeds. Initially targeting $250 million, the

• Strategy raised $979.7M by pricing 11.76M STRD shares at $85 each.
• STRD offers a fixed 10% non-cumulative dividend with no conversion option.

Strategy (formerly MicroStrategy) has expanded its preferred stock offering to raise nearly $1 billion for additional Bitcoin acquisitions. The firm priced 11.76 million shares of its 10% Series A Perpetual Stride Preferred Stock (STRD) at $85 each, with an estimated $979.7 million in net proceeds.

Initially targeting $250 million, the Strategy significantly increased the offering in response to investor interest. The STRD shares will settle on June 10, pending standard closing conditions. This marks the third preferred stock product from Strategy in 2025, following STRK and STRF.

Unlike STRF, which offers a 10% cumulative dividend, and STRK, which pays 8% with a conversion option, STRD delivers a fixed 10% non-cumulative dividend. Therefore, missed payments on STRD won’t accrue. Also, unlike STRK, STRD cannot convert to common shares.

Strategy’s $1B STRD Move Fuels Bitcoin Push

Michael Saylor, Strategy’s executive chairman, described STRD as the “fourth gear” in the company’s “Bitcoin engine.” According to him, the offering adds a high-yield credit product with limited Bitcoin price sensitivity.

The proceeds will fund general corporate activities, primarily Bitcoin purchases. On June 1, Strategy added 705 BTC for around $75.1 million using proceeds from prior STRK and STRF ATM sales. The firm now holds 580,955 BTC, worth over $60 billion, at an average price of $70,023.

Strategy tapped major financial institutions like Morgan Stanley, Barclays, and TD Securities to manage the STRD offering. The stock is listed on the Nasdaq, ensuring public investor access.

Previously, the company has acquired 4,020 BTC for $427.1 million between May 19 and May 25. However, recent activity suggests a slower pace of accumulation. Analysts at K33 noted reduced momentum, citing MSTR’s narrowing premium and increasing competition in Bitcoin treasury strategies.

Strategy’s shares rose 2.6% in early trading, reaching $378.26. Bitcoin currently trades at $104,638, showing signs of stability following a recent dip. With STRD, Strategy aims to maintain its lead in institutional Bitcoin adoption.

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