Imagine a company that just can’t get enough of Bitcoin. Strategy, the firm led by Michael Saylor, recently added another massive chunk to its digital hoard. They picked up 21,021 more bitcoins. This brings their total stash to an eye-popping 628,791 BTC. At current prices, that’s nearly $74 billion worth of the digital gold.
- Strategy, led by Michael Saylor, significantly increased its Bitcoin holdings, bringing the total to nearly $74 billion.
- The company raised $2.521 billion through a preferred stock offering called Stretch, demonstrating a strong belief in Bitcoin’s future.
- Strategy pioneered the “digital asset treasury” approach, using equity and debt to fund crypto purchases, setting a trend for other companies.
This latest acquisition wasn’t funded by spare change. Strategy raised a hefty $2.521 billion through a new preferred stock offering. They call it Stretch. This move alone tells you a lot about the scale of Saylor’s ambition. It also shows how deeply he believes in Bitcoin’s future.
The Stretch Offering and Its Big Splash
The Stretch offering, officially known as Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), sold over 28 million shares. Each share went for $90. This brought in roughly $2.521 billion in gross proceeds. That’s a lot of capital flowing into Bitcoin.
Strategy itself called this transaction a big deal. It’s the largest U.S. IPO completed so far in 2025 based on gross proceeds. It’s also the largest U.S. exchange-listed perpetual preferred stock offering since 2009. Think about that for a moment. In a world full of new companies and financial products, a Bitcoin-focused firm is setting records.
This wasn’t Strategy’s first rodeo, of course. They started buying Bitcoin back in August 2020. Their initial investment was a modest $250 million, using cash from their balance sheet. That was just the beginning of a very public, very aggressive strategy.
Strategy (ticker MSTR) pioneered a trend now known as a “digital asset treasury” (DAT). This is where companies use equity and debt to fund their crypto purchases. It’s a novel approach, and many have watched to see how it plays out. Saylor certainly doesn’t shy away from being a trailblazer.
In the years since their first purchase, Strategy announced a bold “42/42” plan. This plan aims to raise a total of $84 billion. The goal is to acquire more Bitcoin through equity offerings and convertible notes by 2027. It’s a long-term vision, one that requires significant capital and investor confidence.
The Stretch offering followed a shelf registration statement with the U.S. Securities and Exchange Commission. This is a common way for DATs to raise capital. It allows a company to register a large amount of securities with the SEC. Then, they can sell portions of those securities over time without needing to file a new registration each time. It makes the process more flexible.
The Stretch offering actually grew from its initial size. It started at $500 million. It then upsized to net proceeds of $2.47 billion. That’s a testament to the demand for this type of investment. It shows investors are willing to back Saylor’s Bitcoin bet.
The Family of Preferred Stocks
Stretch isn’t alone in Strategy’s portfolio of preferred shares. It joins other perpetual preferred share plans. These plans offer fixed dividend payments to investors. It’s a way to attract capital while giving investors a predictable return.
There’s Strike (STRK), for example. It’s convertible with Strategy’s common stock. It offers an 8% fixed dividend. Then there’s Strife (STRF). This one is non-convertible. It gives a 10% fixed cumulative dividend. Finally, Stride (STRD) offers a fixed 10% non-cumulative annual dividend. It is also non-convertible. Each has its own flavor, designed to appeal to different investor appetites.
These different preferred stock types show how Strategy is diversifying its funding sources. They are not putting all their eggs in one basket. They are finding various ways to bring in the capital needed for their Bitcoin purchases. It’s a clever financial dance, one that keeps the Bitcoin treasury growing.
What does this mean for the future? TD Cowen, an investment bank, recently weighed in. They suggested Strategy could add over 17,000 bitcoins to its treasury over the next decade. This could happen without diluting common equity. This is even after accounting for the issuances needed to fund cash dividends. It suggests a sustainable path for their Bitcoin accumulation.
This ongoing accumulation by Strategy raises interesting questions. What does it mean for Bitcoin’s price? How does it influence other companies to consider a similar strategy? Saylor’s moves often spark debate. They certainly keep the crypto world watching.
The sheer scale of Strategy’s Bitcoin holdings is hard to grasp. It’s a testament to a singular vision. It’s also a bold experiment in corporate finance. We’ll keep an eye on how this grand plan unfolds. It could shape how other companies view digital assets for years to come.
