Strategy Bitcoin Investment issues $500 million in stock to continue building its Bitcoin reserves. The new stock offers a 10% annual dividend, attracting institutional investors.
Stock Issuance and Company Strategy
Strategy Bitcoin Investment has launched a $500 million Series A Perpetual Strife (STRF) preferred stock issuance, designed for institutional investors, offering a fixed 10% annual dividend with quarterly payments starting June 30, 2025. These shares do not include voting rights, and in cases of dividend delays, an additional 1% per year interest is applied, capped at 18%. This move underscores the company's commitment to using financial markets to increase its Bitcoin holdings.
Institutional Investor Support
Strategy Bitcoin Investment has secured backing from major financial institutions, including Morgan Stanley, Barclays, Citigroup, and Moelis & Company. This stock offering is registered under the SEC’s shelf registration process, ensuring transparency. Despite a recent slowdown in Bitcoin acquisitions, with only 130 BTC purchased for $10.7 million, the company remains committed to increasing its Bitcoin holdings.
Michael Saylor’s Long-Term Vision
Speaking at the Future Proof Citywide event in Miami, Michael Saylor linked Bitcoin’s recent market fluctuations to macroeconomic uncertainties and broader market corrections, reaffirming the company’s commitment to long-term Bitcoin accumulation. He stated, 'When that flips, I think Bitcoin will rip forward with a vengeance.'
Despite market volatility, Strategy Bitcoin Investment solidifies its standing as the largest corporate Bitcoin holder, leveraging capital markets to enhance its reserves.
