Strategy Smashes Fundraising Target: Equity Sale Soars to $2B—4X Original Goal

Wall Street's latest cash grab just leveled up—big time.

When Strategy first floated this equity sale, they probably didn't expect investors to throw money at them like it was a meme coin pumping on Elon's tweets. But here we are: $2 billion later, they've quadrupled their initial target. Someone's getting a bonus.

The irony? This happens while retail traders get liquidated on 50x leverage. But hey—institutional money plays by different rules.

One thing's clear: When traditional finance finally catches crypto-level hype, the results are... predictably ridiculous.

Strategy taps Wall Street banks for expanded offering

The offering is being managed by a group of banks, including Morgan Stanley, Barclays, Moelis & Company, and TD Securities. The sale will include 5 million Stretch shares, a number confirmed by Bloomberg.

These preferred shares are designed to sit above Strategy’s Strike and Stride series, as well as its common stock, but they’ll rank below its Strife series and previous convertible bonds.

What makes this latest offering different from Strategy’s older preferred shares is the dividend structure. The Stretch shares will pay cumulative dividends, and the rate isn’t fixed.

The company will have the right to raise the dividend by any amount each month or cut it by no more than 0.25% per year plus any fall in the one-month SOFR rate. This gives Strategy the ability to adjust payouts depending on short-term interest movements.

Bitcoin purchases remain the end goal

The cash raised from this $2 billion sale is headed straight into Bitcoin. Strategy has confirmed that proceeds will be used to increase its crypto holdings, which currently stand at 607,770 coins, worth about $72.4 billion, based on prices listed on the company’s website.

Saylor began buying Bitcoin in late 2020, using a mix of common equity, preferred shares, and debt. That same method is still being used, and dozens of companies have since followed the same approach.

But none have gone as far as Strategy, which still holds more bitcoin than any other public company. Even BlackRock’s iShares Bitcoin Trust ETF (IBIT), which controls around $86 billion in Bitcoin, is behind Strategy in direct holdings.

Bitcoin’s appeal remains tied to its supply cap of 21 million coins, a hard limit coded into the network. Features like the quadrennial halving events, which cut block rewards for miners every four years, have helped support its scarcity narrative. The final Bitcoin isn’t expected to be mined until 2140.

Strategy’s stock price has risen by more than 3,500% since Saylor first pushed the company into Bitcoin. Over the same period, Bitcoin itself climbed about 1,100%, while the S&P 500 only managed a 120% gain.

Every part of this capital raise, the expanded share count, the dividend structure, the adjusted pricing, and the use of proceeds, shows that Strategy’s approach hasn’t changed. The company is using the same aggressive formula: raise capital, buy Bitcoin, and hold.

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