Key Takeaways
- Strategy plans to raise nearly $1B to buy more Bitcoin.
- The new preferred stock offering quadruples a prior $250M plan.
- Strategy's shares trade at a +112% premium to Bitcoin's fair value.
Strategy, the largest corporate holder of Bitcoin, announced plans to raise $979.7 million through a new stock offering aimed at acquiring more Bitcoin.
The offering marks a sharp increase from the $250 million originally proposed.
Details of the stock issuance
The June 6 announcement detailed the issuance of 11,764,700 shares of 10.00% Series A Perpetual Stride Preferred Stock, priced at $85 per share.
Strategy expects to use the funds for…
… general corporate purposes, including the acquisition of Bitcoin and for working capital.
Potential Bitcoin acquisition
At the current Bitcoin price of $103,800, the raise could allow the company to buy approximately 9,633 BTC—far more than its recent June 2 purchase of 705 BTC for $75.1 million.
Preferred stock structure
This preferred stock structure provides non-cumulative 10% dividends to institutional investors and represents a new funding route for Strategy, which previously relied on common stock and convertible debt.
Market premium & analyst caution
Asset manager VanEck recently reported that Strategy trades at a +112% premium to the combined fair value of its Bitcoin and core business.
This premium, attributed to future Bitcoin acquisition expectations and regulatory positioning, has prompted some analysts to caution investors.
Analyst commentary
Markus Thielen, CEO of 10x Research, stated:
Every time MicroStrategy issues new shares to retail investors — shares backed by Bitcoin worth only a fraction of the stock price — the company pockets the difference and frames it as Bitcoin yield.
Comparison with Metaplanet’s premium
Despite this, Strategy’s premium still trails Metaplanet’s, which peaked at a 5x markup over spot Bitcoin prices in late May.
