Key Takeaways
- Strategy plans to raise $21 billion through STRK preferred stock.
- Funds will be used for Bitcoin acquisitions and corporate needs.
- The company currently holds 499,096 BTC, worth over $41 billion.
Strategy, formerly known as MicroStrategy, has announced plans to raise up to $21 billion through the sale of its 8% Series A perpetual strike preferred stock (STRK), according to a filing with the SEC.
The company intends to use the funds for general corporate purposes, including acquiring more Bitcoin.
The stock, which has a liquidation preference of $100 per share, will pay cumulative quarterly dividends at a fixed rate of 8% annually.
Strategy may sell STRK shares via at-the-market sales, negotiated transactions, or block trades.
$42B capital plan & Bitcoin holdings
This offering is part of Strategy’s broader “21/21 plan,” which aims to raise $42 billion through equity and fixed-income securities for Bitcoin acquisitions.
As of its latest filing, the company holds 499,096 BTC—valued at over $41 billion—purchased at an average price of $66,357 per Bitcoin.
STRK stockholder options & market performance
Unlike bonds, perpetual preferred stock does not have a maturity date and pays fixed dividends indefinitely.
STRK holders can convert shares into class A common stock under specific conditions, with the possibility of cash settlements instead of fractional shares.
Strategy also retains the right to buy back outstanding preferred shares if their total value falls below 25% of the original issue or under certain tax conditions.
STRK closed at $92.40 on Friday, down 2.1%, while Strategy’s class A stock (MSTR) fell 5.6% to $287.18.
