Strategy has announced plans to raise $500 million through a preferred stock offering to increase its Bitcoin reserves, highlighting the cryptocurrency's importance in its corporate strategy.
Details of the Stock Offering
In a recent filing with the U.S. Securities and Exchange Commission, Strategy plans to issue 5 million shares of its 10.00% Series A Perpetual Preferred Stock at $100 per share, targeting gross proceeds of $500 million. The proceeds will be used for general corporate purposes, including acquisitions of additional Bitcoins for its treasury. This follows the company's approach of using capital markets to grow its Bitcoin holdings.
Current Holdings and Recent Activities
Strategy holds approximately 499,226 BTC, making it the largest corporate holder of Bitcoin. On March 17, 2025, Strategy announced the purchase of an additional 130 BTC for $10.9 million, at an average price of $82,981 per Bitcoin. The purchase demonstrates the company's ongoing confidence in Bitcoin's long-term value despite market volatility.
Market Reaction to the Company's Strategy
While Strategy has been on an aggressive Bitcoin buying spree, its stock has been volatile in performance. Over the past three months, the company's stock has declined by over 23%. As of the latest trading session, Strategy’s stock is trading around $274.13, down from the previous close. Despite the short-term volatility, the plan to raise $500 million to fund more Bitcoin buying reflects its sustained belief in the cryptocurrency as a strategic asset.
The company's plans to raise capital through a stock offering emphasize its continued commitment to increasing its Bitcoin reserves.
