Strategy Quadruples STRD Offering to $1 Billion for Major Bitcoin Expansion

Michael Saylor’s Bitcoin treasury giant dramatically upsizes preferred stock offering as institutional appetite for crypto exposure reaches new heights

June 6, 2025 – Financial Markets

Strategy, the corporate entity formerly known as MicroStrategy and the world’s largest corporate holder of Bitcoin, announced Friday that it has dramatically upsized its Series A Perpetual Stride Preferred Stock (STRD) offering from an initial $250 million to a massive $1 billion, signaling unprecedented institutional demand for indirect Bitcoin exposure.

💥BREAKING:

STRATEGY UPSIZES ITS $STRD RAISE FROM $250 MILLION TO $1 BILLION TO BUY MORE #BITCOIN pic.twitter.com/PmMl4sFkG5

— Crypto Rover (@rovercrc) June 6, 2025

The company priced 11,764,700 shares of its 10% Series A Perpetual Stride Preferred Stock at $85 per share, with the offering scheduled to close on June 10, 2025, pending customary closing conditions. After accounting for underwriting discounts, commissions, and other expenses, Strategy expects to receive approximately $979.7 million in net proceeds from the offering.

Strategic Bitcoin Accumulation Continues

This latest capital raise represents Strategy’s most ambitious funding effort to date and underscores the company’s unwavering commitment to its Bitcoin treasury strategy. The proceeds will be deployed for general corporate purposes, including the acquisition of additional Bitcoin and working capital needs.

Michael Saylor, Strategy’s Executive Chairman and co-founder, announced the pricing update on social media platform X, stating: “Strategy announces pricing of its Stride Perpetual Preferred Stock $STRD Offering and upsizes the deal from $250M to $1B. $MSTR.”

The dramatic increase in offering size – nearly quadrupling the original target – reflects strong institutional investor appetite for Strategy’s unique approach to Bitcoin exposure. The company has positioned itself as a “Bitcoin Treasury Company,” providing investors with varying degrees of economic exposure to the cryptocurrency through different securities offerings.

Building a Multi-Tiered Capital Structure

The STRD offering represents the latest addition to Strategy’s sophisticated “three-piston Bitcoin engine,” which now includes common stock (MSTR) and three distinct preferred stock offerings: Strike (STRK), Strife (STRF), and the newly introduced Stride (STRD).

The STRD preferred stock carries several distinctive features designed to attract institutional and conservative investors:

• 10% Annual Dividend Rate: Non-cumulative dividends paid quarterly, starting September 30, 2025, subject to board approval and fund availability
• $100 Initial Liquidation Preference: Adjusted daily based on market activity and trading patterns
• Redemption Rights: Strategy retains the right to redeem shares if outstanding shares fall below 25% of the initial issue or upon specified tax events

The offering attracted major Wall Street participation, with Morgan Stanley, Barclays, Moelis & Company, and TD Securities serving as joint book-running managers. Co-managers include The Benchmark Company and BTIG, demonstrating broad institutional support for the transaction.

Current Bitcoin Holdings and Performance

As of Strategy’s most recent disclosure, the company holds an impressive 580,955 Bitcoin, valued at over $60 billion at current market prices. The entire Bitcoin treasury was acquired for approximately $40.7 billion, including fees and expenses, at an average purchase price of $70,023 per Bitcoin.

This massive holding represents approximately 2.8% of Bitcoin’s total 21 million supply cap, generating substantial paper gains of roughly $19.3 billion for the company and its shareholders.

The company’s aggressive accumulation strategy has continued unabated in 2025. Just this week, Strategy announced the acquisition of 705 Bitcoin for approximately $75.1 million between May 26 and June 1, using proceeds from at-the-market (ATM) sales of its STRK and STRF preferred shares.

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Market Reception and Investor Sentiment

Strategy’s MSTR shares gained 1.5% in pre-market trading following the STRD pricing announcement, reflecting positive investor sentiment toward the company’s capital raising capabilities and Bitcoin strategy.

The company has successfully deployed its “42/42” plan, which aims to raise $84 billion split evenly between equity and debt offerings to fund future Bitcoin purchases. This ambitious capital markets strategy has enabled Strategy to maintain its position as the world’s premier corporate Bitcoin treasury.

Recent analyst commentary from K33 Research noted a softening pace in Strategy’s Bitcoin acquisitions, attributing this to a decline in MSTR’s premium to its Bitcoin holdings. However, the successful upsizing of the STRD offering suggests renewed investor confidence in the company’s approach.

Competitive Landscape and Industry Impact

Strategy’s move comes at a time of growing corporate adoption of Bitcoin treasury strategies. Fellow Bitcoin accumulator Metaplanet recently announced its own $5.4 billion equity raise plan to purchase additional Bitcoin, highlighting the expanding trend among corporations seeking Bitcoin exposure.

The institutional appetite for Bitcoin-linked securities has grown substantially since the approval of spot Bitcoin exchange-traded funds (ETFs) earlier this year. Strategy’s preferred stock offerings provide an alternative avenue for institutional investors seeking Bitcoin exposure with additional yield characteristics.

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Looking Forward

Strategy’s successful capital raise positions the company for continued aggressive Bitcoin accumulation despite market volatility. The company has consistently demonstrated its ability to access capital markets across multiple economic cycles, enabling opportunistic Bitcoin purchases during market dips.

With approximately $18.63 billion available under its common stock ATM program, $20.68 billion for STRK, and $2.05 billion for STRF as of June 1, 2025, Strategy maintains substantial flexibility for future Bitcoin acquisitions beyond the current STRD offering.

The company maintains transparency through a public dashboard providing real-time data on Bitcoin holdings and key performance metrics, reinforcing its commitment to shareholder visibility and regulatory compliance.

Financial Innovation in Digital Assets

The STRD offering represents a significant evolution in corporate finance, demonstrating how traditional preferred stock structures can be adapted to facilitate cryptocurrency investment strategies. The 10% dividend yield, while non-cumulative, provides income-focused investors with exposure to Bitcoin’s potential upside while offering some downside protection through the preferred stock structure.

As Bitcoin continues to gain acceptance as a legitimate treasury asset, Strategy’s pioneering approach to corporate Bitcoin adoption serves as a template for other corporations considering similar strategies. The successful upsizing of the STRD offering validates the market’s appetite for innovative financial products that bridge traditional corporate finance with digital asset exposure.

Strategy’s stock trades on NASDAQ under the symbols MSTR (common stock), STRK (Strike preferred), STRF (Strife preferred), and will soon trade under STRD (Stride preferred). The company’s Bitcoin holdings and capital markets activities can be tracked in real-time through its public transparency dashboard.

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