Strategy Raises $712.2M To Acquire More Bitcoin

Strategy (former MicroStrategy), a business intelligence firm known for its large bitcoin (BTC) acquisition, has recently announced it will increase its BTC holding through the sale of shares (MSTR).

The business intelligence company noted that it sold 8.5 million shares of its 10% Series A Perpetual Strife Preferred Stock for a public price of $85 per share. The perpetual strife stock will be issued and sold on March 25, 2025.

According to Strategy, the perpetual preferred stock will earn dividends at a fixed rate of 10% per year, based on a value of $100 per share. The company now holds approximately 499,096 BTC, valued at over $47 million.

Even as the largest corporate BTC holder, the firm noted that it anticipates receiving approximately $711.2 million in net proceeds from the offering after accounting for underwriting discounts, commissions, and estimated expenses. These funds are for general corporate purposes, including bitcoin purchases and working capital. Strategy initially hoped to raise roughly $500 million. The company added that holders of shares of the perpetual strike preferred stock can convert them into shares of Strategy’s stock. 

“If an event that constitutes a “fundamental change” under the certificate of designations governing the perpetual strife preferred stock occurs, then holders of the perpetual strife preferred stock will have the right to require the company to repurchase some or all of their shares of perpetual strife preferred stock at a cash repurchase price equal to the stated amount of the perpetual strife preferred stock to be repurchased, plus accumulated and unpaid regular dividends, if any, to, but excluding the fundamental change repurchase date,” the firm said.

Strategy Buys More BTC

The latest announcement comes after Strategy announced plans to raise $21 billion to acquire more BTC and handle other corporate matters. To raise the billion-dollar fund, the firm entered a sales agreement with about ten companies to issue and sell shares of its 8.00% Series A perpetual strike preferred stock, STRK. The shares will be sold for $0.001 each, arriving at the aggregate offering price of $21 billion. 

Following the move, the company increased its BTC portfolio with 130 bitcoins, worth $10.7 million, its most minor purchase since August 2024. Strategy further revealed in the filing that the purchase was funded with proceeds from its STRK at the money (ATM) program.