Strategy, the company formerly known as MicroStrategy, is expanding its already massive bitcoin bet.
The software company, led by Executive Chairman Michael Saylor, just announced it’s upsizing its Series A Perpetual Stride Preferred Stock (STRD) offering from $250 million to $1 billion—nearly four times the original amount.
This will raise about $979.7 million in net proceeds which will be used for general corporate purposes, with a big emphasis on buying more bitcoin.
“The point of our engine is to generate BTC torque via surgical management of our ATMs (at-the-market offerings) in every single trading day,” said Saylor, describing the financing as part of Strategy’s broader “Bitcoin engine.”
STRD will be sold at $85 per share with 11,764,700 shares to be issued on June 10, subject to closing conditions. Each share pays a 10% annual dividend, paid quarterly, starting September 30, 2025—but only if declared by the board.
What makes STRD unique is its structure. Unlike some of its previous offerings—STRF and STRK—the STRD stock does not allow missed dividends to accrue, cannot be converted into common stock, has no maturity date, and is non-callable for life.
So STRD is a permanent, high-yield instrument for professional and institutional investors who want returns tied to Strategy’s bitcoin plans rather than traditional equity growth.
“It’s our high-yield credit instrument,” said Saylor. “Compared to STRK or STRF, it should be a higher-yielding preferred instrument.”
In addition to high yields, the STRD offering has some protective clauses for both the company and investors. Strategy can redeem all outstanding shares if the total number of STRD shares drops below 25% of the original issue.
Shareholders can demand a buyback of their shares at $100 each (plus any declared but unpaid dividends) if there’s a “fundamental change” such as a restructuring or sale of the company.
Liquidation preference will be daily priced, based on recent market performance, trading prices and historical averages.
The whole point of this offering is to buy more bitcoin. The company already has 580,995 BTC, worth a whopping $61.2 billion, with bitcoin at around $106,000.
With $1 billion raised from this offering, it could buy around 9,700 more bitcoin at current prices, a big jump from the 705 BTC it bought for $75.1 million on June 2.
This is part of Saylor’s company’s ongoing and aggressive plan to be the biggest corporate holder of bitcoin, and so far, it has been very successful.
Related: Strategy Doubles its Bitcoin Acquisition Program
Financial analysts and digital asset experts are taking notice of the company’s growing influence in the Bitcoin space.
A VanEck report recently said the MSTR stock is trading at a +112% premium to the fair value of its bitcoin holdings and core software business—mainly due to future bitcoin purchases and investor sentiment.
But some warn that less experienced investors are overpaying for indirect bitcoin exposure by buying into these stocks, which are increasingly tied to bitcoin’s future price and less to the original business of the company.
Many have advised investors to go directly for bitcoin and keep it in self-custody when possible, instead of buying shares of companies or ETFs.
