Strategy, the largest corporate Bitcoin holder, increased its preferred equity sale from $500 million to $2 billion, according to a Bloomberg report. The raise escalation reflects strong investor demand as the company continues to raise funds to buy more Bitcoin.
The company, led by Michael Saylor, plans to price its Series A Perpetual Stretch preferred shares at $90 each. This is below their $100 face value and comes with an initial 9 percent dividend.
The deal is set to price the shares on Thursday at noon in New York, with Morgan Stanley, Barclays, Moelis and Company, and TD Securities facilitating the raise. The new preferred shares will rank above common stock and other preferreds like Strike and Stride, but below the older Strife preferreds and convertible bonds.
Proceeds from the sale will go toward additional Bitcoin purchases, in line with Strategy’s ongoing accumulation strategy. According to Bloomberg, “Strategy’s common shares pared early losses to trade roughly flat at $412.31 each on Thursday as of 10:58 a.m. in New York, valuing the company at $115 billion. The stock climbed 42.5% this year through Wednesday’s close.”
Michael Saylor’s Strategy owns over 3% of all Bitcoin ever mined after buying 6,220 BTC for $740 million during the week ending July 20. This brings the company’s total holdings to 607,770 Bitcoin, worth around $72 billion. Strategy has funded its purchases through common and preferred shares, along with debt, since 2020. It remains the largest corporate holder of Bitcoin, ahead of firms like BlackRock’s IBIT.
Strategy’s stock has surged over 3,500% since it began buying Bitcoin, while bitcoin itself rose about 1,100%. In comparison, the S&P 500 gained roughly 120% during that time.
