Crypto Giant Eyes Bitcoin Splurge After $2.1B Preferred Stock Play—Is This the Next Big Bet?

Wall Street’s latest chess move? A $2.1 billion preferred stock offering—with whispers of a Bitcoin buying spree lurking in the shadows.

When institutions start stacking paper to chase crypto, you know the FOMO is real. But let’s be honest—this could just be another case of ’sell low-yield debt, buy high-volatility assets’ theater. Classic finance.

One thing’s clear: If that capital floods into BTC, buckle up. The market’s about to get interesting.

Strategy to Buy More Bitcoin?

The capital raise follows a similar structure to Strategy’s previous fundraising rounds, many of which directly funded large-scale bitcoin purchases.

While the filing does not explicitly state that the proceeds will be used to buy Bitcoin, the move has sparked speculation across markets that another major crypto buy may be in the works.

The offering allows MicroStrategy to sell shares at market prices or through negotiated deals and block trades.

There’s no escrow arrangement — sales will be conducted over time at the company’s discretion. The agents involved are entitled to up to 2% in commission from gross proceeds, and the preferred stock itself carries a 10% annual dividend, paid quarterly in cash if declared by the board.

BREAKING:Strategy to sell up to $2.1 billion of 10% preferred stock. pic.twitter.com/80oWuoGg79

The latest issuance comes in addition to the 8.5 million shares of the perpetual preferred stock already outstanding.

The new shares will carry the same terms, including a $100 liquidation preference and voting rights.

Investors are entitled to regular dividends and redemption rights in the event of significant changes, such as tax events or structural shifts in the company’s business.

Strategy also retains the right to redeem the preferred stock if the outstanding share count drops below 25% of the total ever issued or if a qualifying tax event occurs.

If a “fundamental change” takes place, such as a merger, sale, or delisting, shareholders can require the company to repurchase their shares at face value plus unpaid dividends, per the filing.

Strategy Could Become Top Publicly Traded Company in World

Jeff Walton, an analyst at Strategy, has said the firm may one day rise to become the top publicly traded company in the world.

Walton believes the company’s unprecedented exposure to Bitcoin, which recently crossed $104,000, gives it a unique edge.

“Strategy holds more of the best asset and most pristine collateral on the planet than any other company, by multiples,” he said.

As reported, Strategy added another 7,390 BTC to its growing Bitcoin treasury, spending $764.9 million during the week of May 12–18 at an average price of $103,498 per coin. T

As of May 18, Strategy held a total of 576,230 BTC, acquired at an average cost of $69,726 per coin, totaling $40.18 billion.

The company’s Bitcoin-focused strategy has yielded a 16.3% return so far in 2025, supported by Bitcoin’s rally above $104,000.