Strategy Upsizes Strife Preferred Stock Offering from $500M to $722.5M
Strategy (formerly known as MicroStrategy) has announced the pricing of its Series A Perpetual Strife Preferred Stock offering, increasing the deal from an initial $500 million to $722.5 million. The offering, which was priced on March 20, 2025, consists of 8,500,000 shares at a public offering price of $85.00 per share. The settlement of the shares is scheduled for March 25, 2025, pending customary closing conditions.
This development was posted by Strategy’s founder, Michael Saylor, on the social media platform X (formerly known as Twitter) today, March 21, 2025.
Strategy announces pricing of its Strife Perpetual Preferred Stock ($STRF) Offering and upsizes the deal from $500M to $722.5M $MSTR https://t.co/GJVCRwIQ0Y
— Michael Saylor⚡️ (@saylor) March 21, 2025
Reasons for Upsizing Strategy’s Preferred Stock Offering
The upsizing of Strategy’s preferred stock offering from $500 million to $722.5 million reflects strong investor demand for high-yield opportunities, enabling the company to raise more capital than initially planned.
This additional funding supports key growth initiatives, such as Bitcoin holdings and enhancing financial flexibility, while avoiding dilution of common equity.
The fixed dividend structure and the ability to maintain a lower debt-to-equity ratio further adds an appeal to the institutional buyers, aligning with the Strategy’s long-term objectives.
Attractive Dividend Structure
As per the press release, the Series A Perpetual Preferred Stock comes with a fixed annual cumulative dividend rate of 10%, payable quarterly starting June 30, 2025. If the dividend is not paid, the interest might increase and reach up to 18% per annum. The preferred stock offers investors added benefits, including a guaranteed payout of $100 per share if the company is sold or closes, and the option to redeem shares under certain conditions, giving investors more control and extra security.
The proceeds from this offering will be used to increase the Bitcoin holdings of the company. The company, at present, holds over 499,000 BTC. This new way of raising new funds ensures that it does not reduce the value of existing shareholders’ stake.
Strong Institutional Support
Top banks Morgan Stanley, Barclays, Citigroup, and Moelis & Company are backing the deal, showing strong institutional support. The upsized offering also indicates market confidence in the company’s innovative financial structure and yields.
