Strategy Inc., the cryptocurrency investment firm led by Bitcoin advocate Michael Saylor, has successfully completed a $715 million preferred stock offering, marking another aggressive move in its corporate Bitcoin accumulation strategy. The 10% Series A Perpetual Stream Preferred Stock (STRE) offering was significantly upsized, demonstrating strong investor appetite for the company's Bitcoin-focused vision.
Strategy Inc., formerly known as MicroStrategy, has closed an upsized initial public offering that raised €620 million ($715 million) through its 10% Series A Perpetual Stream Preferred Stock (STRE), the company announced this week. The successful offering underscores continued investor confidence in billionaire Michael Saylor's audacious Bitcoin accumulation strategy.
The perpetual preferred stock carries a 10% dividend rate and represents the latest financial instrument in Strategy's diversified approach to raising capital for cryptocurrency investments. The fact that the offering was upsized from its initial target suggests robust demand from institutional and retail investors who share Saylor's bullish long-term outlook on Bitcoin.
Strategy has become synonymous with corporate Bitcoin adoption since it began accumulating the digital asset in 2020. The company has consistently leveraged various funding mechanisms—including convertible debt, equity offerings, and now preferred stock—to expand its Bitcoin treasury, which has become the largest corporate holding of the cryptocurrency globally.
The 10% dividend rate on the preferred shares is notably attractive in the current interest rate environment, providing investors with steady income while maintaining exposure to Strategy's Bitcoin-focused business model. This hybrid approach appeals to income-seeking investors who may be hesitant about direct cryptocurrency exposure but believe in Bitcoin's long-term value proposition.
Saylor, who has become one of the most vocal Bitcoin proponents in the corporate world, has repeatedly argued that Bitcoin serves as superior treasury reserve asset compared to cash, particularly in an environment of monetary expansion and currency devaluation. His strategy has been both praised and criticized, with supporters viewing it as visionary and skeptics warning about concentration risk.
The successful capital raise comes at a time when Bitcoin has shown resilience despite broader macroeconomic headwinds. Strategy's ability to continue attracting significant capital demonstrates that Saylor's thesis resonates with a substantial segment of the investment community.
The proceeds from this offering will be used to purchase additional Bitcoin and support general corporate purposes and growth initiatives. As institutional adoption of cryptocurrency continues to evolve, Strategy's aggressive accumulation strategy positions the company as a de facto Bitcoin proxy for traditional investors seeking exposure to the digital asset through equity markets.