Strategy has unveiled plans to issue up to $2.1 billion in Series A Perpetual Preferred Stock, offering a 10% annual dividend.
The sale will occur gradually through “at-the-market” offerings under SEC Rule 415(a)(4), giving the company flexibility to sell into favorable market conditions or via negotiated block trades.
The proceeds, the company said, will go toward general corporate purposes, which may include additional Bitcoin (BTC) purchases. This move reinforces Strategy’s long-standing treasury policy of converting cash into BTC and positions it to increase its already record-setting holdings, now over 214,000 BTC.
Unlike past funding rounds involving convertible notes, this time Strategy is tapping equity-like capital. Preferred stock doesn’t dilute common shareholder voting power but acts as a hybrid between debt and equity, offering fixed dividends — in this case, a notably high 10%.
That yield reflects both the current interest rate environment and the risk investors perceive in backing a Bitcoin-heavy corporate strategy.
Bitcoin as an investment vehicle
This marks the latest in a series of financial maneuvers by Executive Chairman Michael Saylor, who has turned Strategy into a de facto Bitcoin investment vehicle.
By issuing preferred equity rather than traditional debt, the company avoids adding fixed repayment obligations — while still accessing billions in potential capital for BTC accumulation.
The offering is also perpetual, meaning it has no maturity date. Investors receive dividends indefinitely, making it a long-term bet not just on Strategy, but on Bitcoin’s future.
This fundraising signals Saylor’s unwavering commitment: if market conditions are right, Strategy is prepared to buy even more Bitcoin.
