Strategy is ramping up efforts to secure more debt and equity financing to expand its Bitcoin holdings as part of its corporate treasury strategy.
The company has priced its latest round of perpetual preferred stock, a move it typically makes before acquiring more Bitcoin. The shares will be sold at $85 each with a 10% coupon, generating approximately $711 million in revenue.
Market analyst Jesse Myers noted that the 11.8% annual dividend from this offering allows Strategy to attract investors away from the bond market, which currently offers a 4.2% return.
On March 17, Strategy made its latest Bitcoin purchase, acquiring 130 BTC worth around $10.7 million. This brought its total holdings to 499,226 BTC, valued at $41.8 billion. The purchase was the smallest on record for the company and came after a three-week pause. Despite this, co-founder Michael Saylor has indicated plans to continue raising capital through debt and equity sales to further grow Bitcoin reserves.
Strategy Seeks Additional Capital for BTC Expansion
On March 10, Strategy announced plans to periodically sell shares of its 8% Series A perpetual preferred stock to raise up to $21 billion for Bitcoin acquisitions. The company followed up on March 18 with an offering of 5 million shares in Series A preferred stock to generate additional capital.
According to SaylorTracker, Strategy’s Bitcoin investment remains up approximately 26% overall, with over $8.6 billion in unrealized gains, despite recent market fluctuations.
However, Strategy’s stock price has faced volatility, dropping more than 26% since early March from its January 2025 peak and falling over 44% from its all-time high of around $543 on November 21. Currently, shares are trading at about $299, marking a 29% recovery from the recent low of $231 recorded on March 11.
The company’s inclusion in the Nasdaq 100, which tracks the top 100 tech-focused companies by market capitalization, has bolstered capital inflows. However, it has also made Strategy more susceptible to broader market downturns in the tech sector.