Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Strategy prices $711M offering of 10% perpetual strife preferred stock to fund Bitcoin purchases

Strategy prices $711M offering of 10% perpetual strife preferred stock to fund Bitcoin purchases

CryptopolitanCryptopolitan2025/03/21 19:55
By:By Nellius Irene

Share link:In this post: Strategy priced its 10% Perpetual Strife Stock offering at $85.00 per share, planning to use its proceeds to acquire Bitcoin. The stock offering also features a 10% annual dividend rate of $100 per share. Strategy holds about 499 226 BTC, just 774 BTC shy of 500,000.

Michael Saylor’s Strategy will settle the sale of its 8.5 million shares of 10% Series A Perpetual Strife Preferred Stock offering to fund its Bitcoin purchases. 

The company is expected to earn a little over $711 million in net proceeds after deducting underwriting costs, which is slightly higher than its initial expectation of $500 million.

The firm revealed that it will offer the preferred stock at a public offering price of $85.00 per share.

Strategy expects about $711 million from its stock sale

The preferred stock will also accrue cumulative dividends at a fixed annual rate of 10% on the stated value of $100 per share, with payments made quarterly beginning June 30, 2025. However, if Strategy fails to pay the dividends on time, compounded dividends will pile up at a starting rate of 11%, increasing by 1% each quarter, up to 18% per year.

Meanwhile, the company is expected to finalize its share sales on March 25 and earn roughly $711.2 million in net proceeds. Strategy even claimed it would use its sales gains for general corporate purposes, such as buying Bitcoin and for working capital.

The company will still have the right to redeem all of its perpetual strife preferred stock anytime for cash if outstanding shares are less than 25% of the originally issued shares or if specific tax-related events occur. However, if an event brings about “fundamental change”, the perpetual strife stock offering holders can have Strategy repurchase some or even all of the shares.

See also Bitwise urges Strategy to lend Bitcoin to strengthen revenue and reduce liquidity risk

Moreover, the liquidation preference for Perpetual Strife Preferred Stock will start at $100 a share. Nevertheless, the amount will adjust daily at the close of business after issuance. Morgan Stanley, Barclays, Citigroup, Moelis Company, Cantor Fitzgerald, Keefe, Bruyette Woods, Mizuho Securities, and SG Americas Securities will serve as joint book-running managers.

AmeriVet Securities, Bancroft Capital, BTIG, and The Benchmark Company will act as co-managers for the offering.

Strategy’s BTC holdings are close to reaching 500,000

Strategy has actively been buying Bitcoin since 2020. The company even commented, “We strategically accumulate Bitcoin and advocate for its role as digital capital.”

Just recently, the firm bought 130 BTC for about $10.7 million at roughly $82,981 per Bitcoin using funds it had received from a previous stock sale of “STRK ATM.” By March 21, Strategy and its subsidiaries held 499,226 BTC at an average price of $66,360 per Bitcoin. 

Strategy still needs to acquire 774 BTC to reach a total holding of 500,000 BTC.

 

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

2025 TGE Survival Ranking: Who Will Rise to the Top and Who Will Fall? Complete Grading of 30+ New Tokens, AVICI Dominates S+

The article analyzes the TGE performance of multiple blockchain projects, evaluating project performance using three dimensions: current price versus all-time high, time span, and liquidity-to-market cap ratio. Projects are then categorized into five grades: S, A, B, C, and D. Summary generated by Mars AI This summary was generated by the Mars AI model, and the accuracy and completeness of its content are still being iteratively updated.

MarsBit2025/11/28 16:26
2025 TGE Survival Ranking: Who Will Rise to the Top and Who Will Fall? Complete Grading of 30+ New Tokens, AVICI Dominates S+

Mars Finance | "Machi" increases long positions, profits exceed 10 million dollars, whale shorts 1,000 BTC

Russian households have invested 3.7 billion rubles in cryptocurrency derivatives, mainly dominated by a few large players. INTERPOL has listed cryptocurrency fraud as a global threat. Malicious Chrome extensions are stealing Solana funds. The UK has proposed new tax regulations for DeFi. Bitcoin surpasses $91,000. Summary generated by Mars AI. The accuracy and completeness of this summary are still being iteratively updated by the Mars AI model.

MarsBit2025/11/28 16:26
Mars Finance | "Machi" increases long positions, profits exceed 10 million dollars, whale shorts 1,000 BTC

How much is ETH really worth? Hashed provides 10 different valuation methods in one go

After taking a weighted average, the fair price of ETH exceeds $4,700.

ForesightNews 速递2025/11/28 15:05
How much is ETH really worth? Hashed provides 10 different valuation methods in one go

Dragonfly partner: Crypto has fallen into financial cynicism, and those valuing public blockchains with PE ratios have already lost

People tend to overestimate what can happen in two years, but underestimate what can happen in ten years.

深潮2025/11/28 14:53
Dragonfly partner: Crypto has fallen into financial cynicism, and those valuing public blockchains with PE ratios have already lost