Strategy Seeks $500 Million for Bitcoin Purchases via Stock Offering

Strategy (formerly MicroStrategy) plans to issue an additional 5 million Class A preferred shares at $100 each.

Strategy today announced the launch of $STRF (“Strife”), a new perpetual preferred stock offering, available to institutional investors and select non-institutional investors. For more information, click here. $MSTR https://t.co/XM7XbMepEY

— Michael Saylor⚡️ (@saylor) March 18, 2025

The firm intends to use the proceeds to fund corporate purposes, including the acquisition of Bitcoin.

The shares will carry fixed dividends of 10% annually, with quarterly cash payments. The company reserves the right to redeem part or all of the issuance.

The announcement of plans to raise equity capital followed Strategy’s purchase of 130 BTC for $10.7 million. This marked the company’s smallest acquisition of digital gold since launching its Bitcoin strategy in August 2020.

Is that all you bought? Seems like you are running out of fire power.

— Peter Schiff (@PeterSchiff) March 17, 2025

“Is that all you bought? Seems like you are running out of fire power,” commented Euro Pacific Capital President Peter Schiff.

With the latest transaction, Strategy’s total cryptocurrency holdings reached 499,226 BTC. In this context, well-known internet entrepreneur Jason Calacanis accused the company’s founder, Michael Saylor, of “hijacking” Bitcoin.

Correct

Bitcoin has been hijacked and folks like @Saylor will break the game

— @jason (@Jason) March 17, 2025

In his view, two or three such major players accumulating large shares of digital gold will end the narrative of the asset’s decentralized nature.

Anthony Pompliano, founder and CEO of Professional Capital Management, strongly disagreed with Calacanis. He noted that Strategy, as a public company, is owned by “thousands of investors,” which also applies to the company’s crypto reserves.

Peter Schiff also commented on Strategy’s plans to issue preferred shares worth ~$500 million.

This is ridiculous. It’s a pathetic Hail Mary to keep the air from coming out of the Bitcoin bubble. The only thing keeping it from deflating completely is the Trump administration’s support. Once that goes, it’s all over for Bitcoin and $MSTR.

— Peter Schiff (@PeterSchiff) March 18, 2025

“This is ridiculous. It’s a pathetic attempt to keep the air from coming out of the Bitcoin bubble. The only thing keeping it from deflating completely is the Trump administration’s support. Once that goes, it’s all over for BTC and Strategy,” wrote the well-known gold advocate.

Simon Dixon, founder of the BnkToTheFuture platform, noted that the promise of fixed 10% dividends in the absence of income presents a serious risk for Strategy. However, he expressed confidence that if problems arise, the government will nationalize the company. This would be a “strategic move” in terms of creating a national Bitcoin reserve, Dixon added.

Strategy aims to raise $21 billion through the issuance of Class A preferred shares.