Strategy to Raise $1B for Bitcoin Purchases

Strategy plans to raise $1 billion via preferred stock offering to acquire more Bitcoin. The company expands its crypto portfolio with a new financing structure.

Strategy Launches New Bitcoin Acquisition Round

Strategy, the world’s largest corporate Bitcoin holder, has announced a new fundraising round. The firm aims to raise nearly $1 billion to expand its Bitcoin holdings.

Executive chairman Michael Saylor detailed plans to issue 11,764,700 Series A Perpetual Stride Preferred Shares at $85 per share. After deductions, Strategy expects to net approximately $979.7 million.

The proceeds will support corporate needs, including Bitcoin acquisitions and working capital. This offering quadruples Strategy’s previous $250 million fundraising announcement.

The company is exploring new funding methods beyond common stock and convertible debt offerings.

Preferred Shares Offer 10% Dividends

The preferred shares will pay institutional investors non-cumulative dividends equal to 10% of the stated value. With Bitcoin priced at $103,800, Strategy could acquire about 9,633 BTC.

This far exceeds its recent purchase of 705 BTC worth $75.1 million, reported on June 2.

According to VanEck, Strategy’s stock trades at a 112% premium over spot Bitcoin prices. The surge reflects expectations for further BTC accumulation, regulatory advantages, and speculative investor demand.

10x Research notes that Strategy frequently issues shares backed by Bitcoin valued lower than the current share price.

Investors May Overpay for Bitcoin Exposure

10x Research warns that some investors ignore the firm’s net asset value (NAV). This may result in overpaying for Bitcoin exposure without additional leverage.

Notably, Strategy’s premium remains below that of Japan’s Metaplanet. In May, Metaplanet’s Bitcoin premium reached $596,154 — five times the market value of its Bitcoin holdings.