Michael Saylor Doubles Down, MicroStrategy Raises $2B for More Bitcoin

MicroStrategy expands capital raise to $2B through Series A Preferred Stock, signaling serious intent to deepen Bitcoin exposure aggressively.

Offering includes 9% annual cash dividend, designed to attract investors while funneling proceeds into Bitcoin accumulation and corporate operations.

Michael Saylor reaffirms bullish stance as MicroStrategy boosts BTC holdings strategy beyond 214,000 coins through institutional-grade capital maneuvers.

MicroStrategy has increased its capital raise from $500 million to $2 billion through a Series A Preferred Stock offering aimed at acquiring more Bitcoin.

Strategy™ Launches $2 Billion Preferred Stock Offering

Strategy™ (Nasdaq: MSTR/STRK/STRF/STRD) announced the pricing of 28,011,111 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC Stock) at $90 per share. The price of the initial public offering, which was set on July 24, 2025, is anticipated to yield it a net proceeds of about 2.474 billion dollars after adjustment of underwriting discounts, commissions, and other related expenses.

The issuance is set to settle on July 29, 2025, subject to closing conditions. Strategy intends to use the proceeds for general corporate purposes, primarily the acquisition of Bitcoin and working capital needs. The company currently holds more than 214,000 BTC and is continuing to increase its exposure to digital assets.

Preferred Stock Carries 9% Initial Annual Dividend

The STRC Stock offers a variable annual dividend starting at 9.00%, payable in cash and distributed monthly. The first payment will occur on August 31, 2025. The dividend rate is subject to adjustments, which Strategy may make at its sole discretion, though specific constraints apply.

Reductions in the dividend rate cannot exceed 25 basis points plus any increase in the one-month SOFR rate over a given period. The company must also ensure all previous regular dividends have been paid before adjusting future rates. Strategy’s intent is to maintain the trading price of the STRC Stock near its $100 stated value through careful dividend management.

Redemption Rights Offer Flexibility and Control

Strategy has the right to redeem any number of outstanding STRC shares at $101 per share plus any accrued dividends, following the stock’s listing on Nasdaq or another major exchange. Partial redemptions must leave at least $250 million in outstanding STRC Stock not called for redemption.

Additionally, clean-up redemptions are allowed if outstanding shares fall below 25% of the total originally issued. In the case of tax-related events, Strategy may redeem all shares at their liquidation value, including unpaid dividends.

Holders will also have the right to request repurchase if a defined fundamental change occurs. In such instances, Strategy must buy back shares at the $100 stated amount, including any accumulated dividends.

Liquidation Preference and Dividend Compounding Rules

The STRC Stock has a $100 per share liquidation preference. This value may be adjusted upward daily based on market conditions. If Strategy sells shares on a given day, the liquidation preference becomes the highest among three benchmarks: the $100 stated amount, the previous day’s closing price, or the 10-day average closing price.

If dividends are unpaid by their scheduled dates, compounded dividends will accumulate at the prevailing monthly rate. These unpaid dividends will continue to accrue until paid in full. The monthly compounding mechanism ensures that any missed payments are preserved and eventually settled.

Morgan Stanley, Barclays, Moelis & Company, and TD Securities are acting as joint book-running managers of the offering. Co-managers are The Benchmark Company, Clear Street, AmeriVet Securities, Bancroft Capital, Keefe, Bruyette & Woods, and Maxim Group LLC.. The offering is being made under an effective shelf registration statement filed with the SEC.

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