$2B Preferred Stock Sale Supercharges Bitcoin Strategy—Here’s How

Wall Street meets crypto in a power move that’ll have traditionalists clutching their pearls.

The playbook:
A heavyweight investor just turbocharged their Bitcoin position with a $2 billion preferred stock offering. No cap—just cold, hard capital deployment.

Why it matters:
Preferred stock is the finance world’s VIP lounge—lower risk, steady dividends. Pair that with Bitcoin’s volatility? Either genius or a hedge fund manager’s midlife crisis.

The cynical take:
Because nothing says ‘confidence in decentralized finance’ like good ol’ regulated securities. Maybe they’ll use the paperwork to light their next cigar.

Watch this space—the institutional floodgates aren’t just opening, they’re getting bulldozed.

Deal Structure

The new Stretch shares offer cumulative dividends that MicroStrategy can adjust monthly based on the one-month SOFR rate plus 0.25% or internal mechanisms. 

This flexible capital structure allows for Bitcoin acquisitions without common stock dilution, permitting MicroStrategy to continue its aggressive cryptocurrency accumulation strategy while tapping institutional capital markets.

MicroStrategy’s common stock ‘MSTR,” stayed mostly flat and closed at $412.31 on Thursday, giving the company a market capitalization of $115 billion. According to Google Finance, MSTR has surged more than 42% in 2025 and over 146% in the last year. That performance has outpaced the S&P 500 and tech sector, which each gained about 17%, according to Fidelity Research.

The company said it plans to use the money raised to buy more Bitcoin. As of now, the company owns 607,770 BTC worth around $72.4 billion, according to its website. A source told Bloomberg that Strategy’s new preferred shares will rank above its Strike and Stride shares but below its Strife preferreds and past convertible bonds.

Unlike the company’s other preferred stock, the new Stretch shares will pay cumulative dividends. The dividend rate isn’t fixed. Strategy can raise it any month and lower it by the smaller of either the drop in the one-month SOFR rate plus 0.25%, or any other internal calculation.

Growing Institutional Bitcoin Treasury Trend

Strategy owns around 3% of all bitcoin in circulation. Other firms are following suit. For instance, Japanese tech company Quantum Solutions recently announced plans to buy 3,000 BTC. Meanwhile, miners like MARA Holdings, Riot Platforms, CleanSpark, and Hut 8 are expanding their reserves too.

The 4x expansion from the original $500 million target demonstrates strong institutional appetite for Bitcoin exposure through public equity markets. This demand pattern suggests growing acceptance of cryptocurrency treasury strategies among traditional investors seeking digital asset exposure without direct Bitcoin ownership.

The preferred stock structure allows MicroStrategy to continue its Bitcoin accumulation strategy while providing institutional investors with dividend income and preferred liquidation rights, bridging traditional finance preferences with cryptocurrency exposure.

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