Strategy announced plans on Monday to issue up to $44 billion in common and preferred equity, with the proceeds earmarked to support ongoing Bitcoin purchases. The offering includes $21 billion in additional common stock under the ticker MSTR, $21 billion in its variable rate preferred share STRC, and $2.1 billion in its convertible preferred share STRK. The move reflects the company’s continued reliance on capital markets to expand its Bitcoin holdings.
Although Strategy introduced STRC more than six months ago, the product attracted significant investor interest this month, enabling the firm to raise over $1.5 billion. To stimulate demand, Strategy raised the share’s monthly dividend to 11.5% shortly before the surge in issuance. The company has indicated it will issue STRC to fund Bitcoin acquisitions when the share trades above its $100 par value.
Despite that recent momentum, STRC has traded below the $100 threshold for seven consecutive trading days, slowing the company’s acquisition pace. Strategy’s STRK preferred stock, along with several other instruments, carries common stock conversion rights. The firm’s growing use of preferred shares signals a broader strategic pivot toward what it describes as “digital credit” as an alternative funding source to common equity.
The Tysons Corner, Virginia-based company disclosed that it acquired 1,031 Bitcoin for $76.6 million last week, funding the purchase through common stock issuance. That transaction represented Strategy’s smallest Bitcoin purchase in a month. Strategy co-founder and Executive Chairman Michael Saylor acknowledged the more modest pace on Sunday, posting “The Orange March Continues” to X.
As of Monday, Strategy reported that its Bitcoin stockpile had reached 762,099 Bitcoin, a holding valued at more than $54 billion. With an average purchase price of $75,694 per Bitcoin, the company’s position carried a nearly $3.3 billion unrealized loss. Strategy is currently the largest corporate holder of Bitcoin.
Bitcoin was trading around $71,420 on Monday, according to CoinGecko, recovering some weekly losses after President Trump signaled a five-day pause on U.S. missile strikes against Iran. The cryptocurrency had come within roughly $60 of Strategy’s average cost basis last week before retreating on inflation concerns tied to higher energy costs and instability in the Middle East. Bitcoin had also dipped below $76,000 in February, drawing heightened scrutiny of Strategy’s financial position.
Strategy’s stock rose 2% to $138 on Monday, according to Yahoo Finance. On Myriad, a prediction market operated by Dastan, traders placed an 18% probability on Strategy selling some of its Bitcoin this year, up from 15% the previous month. The slight increase suggests growing, though still limited, market concern about the firm’s ability to sustain its acquisition strategy amid price volatility.
Originally reported by Decrypt.
