Strategy's issuance of 10%/year perpetual preferred stock STRF worth $2.1 billion, continuing to accumulate Bitcoin after the current treasury of 576,230 BTC.
Software technology group MicroStrategy, now renamed to Strategy (Nasdaq: MSTR), announced on May 22 the implementation of an "at-the-market" (ATM) stock issuance program for 10.00% Series A Perpetual Preferred Stock (code: STRF), with the goal of raising up to $2.1 billion.
According to the filing with the US Securities and Exchange Commission (SEC), these preferred stocks will be offered non-periodically through three distribution agents: TD Securities, Barclays Capital, and The Benchmark Company. The issuance is carried out under an expanded shelf registration and a prospectus supplement filed on the same day.
Strategy stated that it plans to use the net proceeds from this ATM program for general corporate purposes, including Bitcoin purchases and working Capital supplementation. The issuance of these high-interest preferred stocks marks the next step for Strategy in the Capital market, aimed at serving a Bitcoin-centric business model.
Expanding Bitcoin Treasury with 576,230 BTC
This perpetual preferred stock provides a fixed dividend of 10%/year, which can be sold in various trading forms depending on investor demand and company decisions. This move aligns with the strategy of transforming into a Bitcoin development company, where Strategy leverages software revenue and market Capital to accumulate BTC as a strategic reserve.
The announcement came shortly after Strategy disclosed on May 19 that the company had purchased an additional 7,390 BTC with a total value of approximately $764.9 million, equivalent to an average price of $103,498/BTC. As of May 18, 2025, Strategy currently holds 576,230 BTC, having spent around $40.18 billion with an average price of $69,726/BTC. YTD, Strategy has achieved a 16.3% return on its BTC investment portfolio.
Michael Saylor, Strategy's Executive Chairman, continues to be a strong supporter of this strategy. He forecasts that Bitcoin price could reach $13 million by 2045, with an optimistic scenario up to $49 million and a pessimistic scenario of $3 million. Saylor also predicts that Bitcoin's market Capital will reach $200 trillion, then grow steadily by 20% each year.
