The enterprise software company, operating under the brand “Strategy,” plans disciplined sales of perpetual preferred stock over time
TYSONS CORNER, Va. — MicroStrategy Incorporated, trading as Strategy (NASDAQ: MSTR/STRK/STRF), announced Thursday that it has entered into a sales agreement to issue and sell up to $2.1 billion of its 10.00% Series A Perpetual Strife Preferred Stock through an at-the-market offering program.
Strategy Announces $2.1 Billion $STRF At-The-Market Program pic.twitter.com/ezIJKaWM0m
— Michael Saylor (@saylor) May 22, 2025
The move represents another significant capital raise for the company, which has positioned itself as “the world’s first and largest Bitcoin Treasury Company” with a current market capitalization of $110.1 billion and stock price of $402.69.
Strategic Bitcoin Accumulation Continues
Strategy plans to use the net proceeds from the offering for general corporate purposes, working capital, and notably, the acquisition of additional Bitcoin. This aligns with the company’s aggressive Bitcoin accumulation strategy that has made it a leader in corporate cryptocurrency holdings.
As of May 18, 2025, Strategy held 576,230 Bitcoin, acquired at an average cost of $69,726 per coin, representing a total investment of $40.18 billion. The company recently added another 7,390 BTC to its treasury during the week of May 12-18, spending $764.9 million at an average price of $103,498 per Bitcoin.
The company’s Bitcoin-focused strategy has yielded impressive returns, with a 16.3% gain in 2025 and a remarkable 144.5% return over the past year, supported by Bitcoin’s rally above $104,000.
Also Read: Michael Saylor Warns “Digital Gold Rush” Ends January 2035
Offering Structure and Terms
The preferred stock offering will be conducted as an at-the-market program, allowing Strategy to sell shares over an extended period while considering market conditions and trading volumes. The perpetual strife preferred stock trades under the ticker “STRF” on Nasdaq and closed at $100.65 on May 21.
Key features of the preferred stock include:
- 10% annual dividend paid quarterly in cash, subject to board declaration
- $100 liquidation preference per share
- Voting rights for shareholders
- Redemption rights in case of significant corporate changes, tax events, or if outstanding shares drop below 25% of total issued
- Protection provisions allowing shareholders to require repurchase at face value plus unpaid dividends during fundamental changes such as mergers or delistings
The offering is being conducted through agents including TD Securities, Barclays Capital, and The Benchmark Company, who are entitled to up to 2% commission from gross proceeds. There is no escrow arrangement, giving Strategy discretion over the timing and volume of sales.
Market Positioning and Future Outlook
The latest issuance adds to the 8.5 million shares of perpetual preferred stock already outstanding, with the new shares carrying identical terms and rights.
Jeff Walton, an analyst at Strategy, has expressed ambitious projections for the company’s future, suggesting it may one day become the top publicly traded company globally. “Strategy holds more of the best asset and most pristine collateral on the planet than any other company, by multiples,” Walton stated, referring to the company’s substantial Bitcoin holdings.
The company’s dual focus combines its traditional enterprise analytics software business with its pioneering role as a Bitcoin treasury company. Strategy has also recently introduced new AI-driven data management tools, including Strategy Mosaic™ and Strategy One™ Auto 2.0, emphasizing its commitment to technological innovation alongside its digital asset strategy.
Legal and Regulatory Considerations
The offering is being conducted under a prospectus supplement filed with the Securities and Exchange Commission on May 22, 2025, as part of an existing automatic shelf registration statement that became effective on January 27, 2025.
Strategy faces ongoing legal challenges, including a class action lawsuit alleging misleading statements about its Bitcoin investment strategy, which the company plans to contest.
Despite potential short-term liquidity concerns indicated by a current ratio of 0.66, analyst firms remain optimistic about Strategy’s prospects. BTIG recently raised its price target to $620, while Mizuho Securities increased its target to $562, reflecting confidence in the company’s financial strategy.
The offering represents Strategy’s continued commitment to leveraging capital markets to expand its Bitcoin treasury while maintaining its position as a leader in both the digital asset and enterprise analytics sectors. Check cryptonewstoday for latest updates
