Michael Saylor’s Strategy Boosts Bitcoin War Chest With $2B Raise – Bloomberg
Strategy, the corporate entity behind the world’s largest Bitcoin treasury, has expanded its latest preferred stock offering to $2 billion, according to a report from Bloomberg on Thursday.
The firm, helmed by executive chairman Michael Saylor, had initially planned to raise $500 million through the offering. The increase comes as investor interest continues to gain exposure to Bitcoin via traditional financial instruments.
Strategy Cuts Price of New ‘Stretch’ Preferred Shares as Demand Surges
Strategy’s new preferred stock, dubbed “Stretch” (STRC), was first introduced earlier this week, with the company announcing plans to issue 5 million shares at $100 each. The Series A Perpetual Stretch preferred shares are expected to carry an initial 9% dividend.
The Bloomberg report, citing sources familiar with the matter, stated that the shares are now set to be priced at $90 each, slightly below face value. Pricing is expected to take place on Thursday afternoon in New York.
Despite the discount, the offering has attracted strong attention, prompting the company to quadruple the size of the sale.
The Stretch preferred shares rank senior to some of Strategy’s previous preferred stock classes, including Strike and Stride, but remain junior to the company’s Strife securities and its convertible bonds.
The new securities also differ structurally, offering cumulative dividends and an adjustable dividend rate. The rate can be increased monthly at Strategy’s discretion or lowered by a formula tied to interest rate movements, specifically changes in the one-month SOFR.
Michael Saylor’s firm has made no secret of how it plans to use the funds raised. The company currently holds 607,770 BTC, valued at approximately $43 billion, consistently directing capital from debt and equity offerings toward increasing its Bitcoin reserves.
Strategy is working with Morgan Stanley, Barclays, Moelis & Co., and TD Securities to manage the transaction. “Strategy intends to use the net proceeds for purposes including acquiring Bitcoin,” the source told Bloomberg.
The Stretch offering marks the fourth preferred equity product from Strategy, following earlier launches of STRD, STRF, and STRK. The firm’s aggressive accumulation strategy continues to draw attention across markets, with this latest move reinforcing its commitment to Bitcoin as a core treasury asset.
Strategy Faces Legal Challenge Following Latest Bitcoin-Fueled Raise
Strategy and its board are facing a class-action lawsuit following the launch of its new STRC preferred stock offering, designed to raise funds for additional Bitcoin purchases.
The lawsuit filed on July 21 in the Delaware Court of Chancery alleges violations of the Delaware General Corporation Law (DGCL) related to recent changes made to the company’s existing Series A Perpetual Strike Preferred Stock, known as STRK.
The plaintiff, David Dodge, argues that Strategy improperly amended STRK’s terms, specifically its liquidation preference, without a shareholder vote.
The lawsuit claims the board breached its fiduciary duties and seeks to invalidate the amendment, correct regulatory filings, and award damages. The case is still in its early stages, and the company has stated that it cannot yet assess the potential financial impact.
Despite the legal challenge, Strategy’s stock (MSTR) has remained relatively stable, trading around $413 on Thursday. Shares have gained over 37% year-to-date and 146% over the past 12 months, mirroring Bitcoin’s broader price surge.
Strategy added 4225 BTC last week, funded through four at-the-market equity offerings totaling $472.5 million. Its aggressive accumulation strategy has influenced other companies globally.
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