Strategy plans $2.1b preferred stock sale to fuel Bitcoin strategy

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. You might also like: Volatility Shares launches first XRP futures ETF on Nasdaq 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. You might also like: Missed the $10k to $100k ride? Bitcoin’s next leg could be the biggest yet

Source: crypto.news