Capital Raise Aims to Fuel Continued Bitcoin Acquisition Strategy
Strategy, the business intelligence firm turned Bitcoin-centric treasury company, has significantly expanded its preferred stock offering from $500 million to $2 billion, according to a recent Bloomberg report. The move underscores the company’s continued commitment to growing its Bitcoin holdings amid a broader institutional rally into the digital asset space.
The updated offering involves Series A Perpetual Stretch preferred shares, priced at $90 per share as of midday Thursday (ET), with an initial dividend yield of 9%. The sale is being underwritten by several major financial institutions, including Morgan Stanley, Barclays, TD Securities, and Moelis & Co.
Growing Appetite for Bitcoin-Focused Capital
This latest expansion comes just days after initial reports surfaced regarding Strategy’s plan to raise capital through preferred equity. Initially, the share pricing was expected to range between $90 and $95, with 5 million preferred shares being offered.
The surge in the offering’s size reflects strong investor appetite and growing confidence in Strategy’s Bitcoin-centric model, especially as institutional interest in crypto markets continues to rise. Proceeds from the sale are expected to be used primarily to fund additional Bitcoin purchases, reinforcing Strategy’s commitment to its flagship treasury strategy.
Market Performance: Strategy Outpaces Tech and Broader Indexes
Strategy’s common stock (MSTR) remained steady around $413 on Thursday, reflecting little immediate market reaction to the announcement. However, MSTR has delivered remarkable performance metrics, with a 37% year-to-date gain and a 146% increase over the past 12 months.
In comparison, both the S&P 500 Index and the broader information technology sector have posted annual gains of around 17%, according to data from Fidelity Research. This stark contrast highlights the extent to which Strategy’s valuation is tied to Bitcoin’s market trajectory, rather than traditional tech sector fundamentals.
Strategy’s Bitcoin Holdings Tower Over Competitors
Since pivoting to Bitcoin in 2020, Strategy has become the largest corporate holder of Bitcoin globally, amassing a total of 607,770 BTC. This figure represents approximately 66% of all Bitcoin held by publicly traded companies, according to industry data.
In total, publicly listed firms now hold 918,108 BTC, with Strategy accounting for the overwhelming majority. The top 100 corporate Bitcoin holders collectively own 917,599 BTC, showcasing the growing trend of digital asset accumulation as a corporate reserve strategy.
The sustained rise of Bitcoin to all-time highs throughout 2024—buoyed by institutional ETF inflows, regulatory clarity, and treasury adoption—has provided strong tailwinds for Strategy’s strategy and share price.
Global and Industry-Wide Momentum
Strategy’s bold treasury model is not going unnoticed. Other firms are beginning to replicate the approach, particularly in light of Bitcoin’s performance as a non-correlated, long-term store of value.
One of the latest to join the trend is Quantum Solutions, a Japanese AI company listed on the Tokyo Stock Exchange, which announced plans to acquire 3,000 BTC over the next year. The company described Bitcoin as a “long-term, strategic reserve instrument,” indicating a deliberate shift toward a treasury reserve asset.
In the mining sector, firms are also increasing their BTC reserves. MARA Holdings has emerged as the second-largest corporate Bitcoin holder, with 50,000 BTC in reserves. Other significant mining firms such as Riot Platforms, CleanSpark, and Hut 8 are also listed among the top 11 corporate holders.
Outlook: Bitcoin-Treasury Strategy Gains Institutional Traction
As Bitcoin continues to gain institutional acceptance and regulatory clarity improves, Strategy’s decision to further capitalize on market conditions through a $2 billion preferred stock issuance demonstrates both confidence and ambition.
The company’s leadership in the corporate Bitcoin space has not only propelled its own market cap—now hovering around $116 billion—but also established a template for other corporations seeking diversification beyond traditional fiat reserves.
With strong institutional underwriting, expanding interest from global firms, and a rising number of corporate Bitcoin adopters, Strategy’s model is poised to remain at the forefront of the next phase of digital asset integration in corporate finance.
