Strategy Unveils New Fundraising for Bitcoin Purchases

Strategy (MSTR) revealed its new plan for raising funds from capital markets to purchase additional bitcoin (BTC), although Wall Street’s funding appears to be diminishing.

The company’s Perpetual Strife Preferred Stock (STRF) offers a fixed 10% annual cash dividend, paid quarterly. According to an SEC filing, if dividends are unpaid, they will accumulate an additional 1% per year (compounded quarterly) until reaching a maximum of 18%. The first dividend payment is scheduled for June 30, 2025.

Previously, Strategy’s initial preferred series (STRK) offered only 8% interest. Additionally, the company’s series of convertible debt offerings provided negligible or 0% interest rates.

Unlike common stock, STRF holders do not have voting rights but are prioritized in liquidation with a $100 per share liquidation preference. Strategy can redeem STRF shares if fewer than 25% of the original shares remain or in the case of tax events. Holders can demand a buyback if a fundamental change occurs.

STRF is expected to trade on Nasdaq within 30 days of issuance, providing investors bitcoin exposure with a high-yield structure. Morgan Stanley, Barclays, Citigroup, and Moelis & Company are the joint book-running managers for the offering conducted under an SEC shelf registration.

After an aggressive Bitcoin acquisition strategy in recent months, Strategy’s fundraising and token acquisitions have significantly slowed. Last week, the company made additional purchases of 130 BTC for $10.7 million, bringing their total holdings to 499,226 tokens.

MSTR stock was down 5% in early trading Tuesday, correlating with a broader market decline and Bitcoin’s drop from $84,000 to $81,300.