Strategy Skyrockets Equity Sale to $2 Billion, Crushing Original Fundraising Target by 4x

• What’s Driving Strategy’s Record-Breaking Equity Sale?
• How Does This Offering Differ From Wall Street Norms?
• Where Is All This Capital Actually Going?
• Why Does Bitcoin Remain Strategy’s Endgame?
• What Does This Mean for Crypto Investors?
• Frequently Asked Questions

In a bold financial maneuver, Strategy has announced a $2 billion preferred equity sale, far exceeding its initial $500 million target. The funds will fuel its aggressive bitcoin acquisition strategy, reinforcing its position as the largest corporate holder of the cryptocurrency. The offering, priced at a 10% discount with a 9% dividend yield, reflects strong investor confidence despite its unconventional structure. With Bitcoin holdings now worth over $72 billion, Strategy continues to redefine corporate treasury management in the digital age.

What’s Driving Strategy’s Record-Breaking Equity Sale?

The company is moving forward with its perpetual preferred "Stretch" shares priced at $90 each—a 10% discount to their $100 face value—set to debut at noon Thursday in New York. These shares come with an initial 9% dividend yield, based on pre-pricing disclosures. This capital raise comes as Strategy’s stock has surged 42.5% year-to-date, trading around $412.31 per share as of 10:58 AM Thursday, giving the company a staggering $115 billion market cap. The timing couldn’t be better—investor appetite for crypto-related equities is at an all-time high, and Strategy is capitalizing on this momentum.

How Does This Offering Differ From Wall Street Norms?

Managed by banking heavyweights including Morgan Stanley, Barclays, Moelis & Company, and TD Securities, the $2 billion offering comprises 5 million Stretch shares. These preferred shares sit above Strategy’s Strike and Stride series and common stock in the capital stack, but rank below its Conflict series and previous convertible notes. The real innovation lies in the dividend structure—these shares pay cumulative dividends with variable rates. Strategy can adjust payments monthly, with flexibility to increase dividends without limit or decrease them by no more than 0.25% annually plus any declines in the one-month SOFR rate. This gives the company unprecedented control over its dividend obligations in fluctuating rate environments.

Where Is All This Capital Actually Going?

Every dollar raised is earmarked for Bitcoin purchases. Strategy currently holds 607,770 BTC (worth approximately $72.4 billion at current prices), maintaining its position as the largest corporate Bitcoin holder—even surpassing BlackRock’s iShares Bitcoin Trust (IBIT) which holds about $86 billion in BTC. Since CEO Michael Saylor first pivoted the company toward Bitcoin in late 2020, Strategy has employed a mix of common equity, preferred shares, and debt to fund its crypto acquisitions. This approach has become something of a blueprint for corporate Bitcoin adoption, though no other company has matched Strategy’s scale or conviction.

Why Does Bitcoin Remain Strategy’s Endgame?

The cryptocurrency’s hard-capped supply of 21 million coins—with the last Bitcoin not expected to be mined until 2140—creates what Saylor calls "the ultimate scarcity play." Features like quadrennial halving events, which reduce miner rewards every four years, further bolster Bitcoin’s value proposition. Strategy’s stock has skyrocketed over 3,500% since its Bitcoin pivot, outperforming Bitcoin itself (up ~1,100%) and the S&P 500 (up 120%) over the same period. This latest capital raise—with its expanded share count, innovative dividend structure, adjusted pricing, and clear Bitcoin focus—shows Strategy isn’t deviating from its winning formula: raise capital, buy Bitcoin, and hold.

What Does This Mean for Crypto Investors?

Strategy’s continued dominance in corporate Bitcoin holdings validates the asset class for institutional investors. As the BTCC research team notes, "Strategy’s ability to repeatedly raise billions for Bitcoin acquisitions demonstrates growing mainstream acceptance of crypto as a treasury asset." While retail investors can’t directly participate in these preferred share offerings, they can observe how sophisticated players are positioning themselves in the market. One thing’s clear—Strategy isn’t just betting on Bitcoin; it’s rewriting the corporate finance playbook in real-time.

Frequently Asked Questions

How many Stretch shares is Strategy offering?

Strategy is offering 5 million Stretch preferred shares at $90 each, totaling $2 billion in capital.

What’s the dividend yield on these shares?

The shares carry an initial 9% dividend yield, though this rate can adjust monthly based on SOFR and company discretion.

How does this affect Strategy’s Bitcoin holdings?

The entire $2 billion proceeds will be used to purchase additional Bitcoin, expanding Strategy’s current holdings of 607,770 BTC.

Why is Strategy’s stock performing so well?

The stock has surged 3,500% since adopting its Bitcoin strategy, benefiting from crypto’s mainstream adoption and the company’s first-mover advantage.