MicroStrategy, now operating as Strategy (Nasdaq: MSTR; STRK), announced plans to issue 5 million shares of its Series A Perpetual Strife Preferred Stock to raise $500 million, with proceeds primarily directed toward purchasing more Bitcoin, according to an SEC filing.
Unlike common stock, Series A Perpetual Preferred Stock does not grant voting rights but pays fixed dividends — in this case, 10% annually, with quarterly payments in cash. If dividends are not paid on time, they accumulate at an increasing rate, up to a maximum of 18% per year. This structure allows Strategy to raise capital without diluting voting power for common shareholders.
Strategy’s Bitcoin acquisition strategy remains unchanged, with the firm continuing to accumulate BTC aggressively.
On March 17, Strategy disclosed the smallest purchase of 130 BTC for $10.7 million at an average price of $82,981 per coin between March 10 and March 16. That purchase was funded by selling 123,000 shares of its 8.00% Series A preferred stock, generating the required capital without issuing new Class A common stock.
As of March 16, Strategy’s total Bitcoin holdings stand at 499,226 BTC, valued at over $41.6 billion. The firm’s total BTC holdings were acquired at an average price of $66,360 per BTC, making it the largest corporate holder of Bitcoin, controlling more than 2% of the fixed 21 million BTC supply.