Michael Saylor Raises $2B for Bitcoin Expansion

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Strategy, the corporate entity led by Bitcoin advocate Michael Saylor, has expanded its preferred stock offering from $500 million to $2 billion in response to strong investor demand, according to a Bloomberg report on Thursday.

The move highlights growing interest among traditional investors seeking exposure to Bitcoin through regulated financial instruments. Strategy, known for holding the largest corporate Bitcoin treasury, is once again leveraging capital markets to increase its digital asset reserves.

The offering introduces a unique class of preferred shares called Series A Perpetual “Stretch” (STRC) shares. These were initially priced at $100 per share with a planned issuance of 5 million shares, carrying a 9 percent starting dividend. Due to overwhelming demand, the final offering price was lowered to $90 per share. Despite the discount, the offering attracted significant institutional interest, prompting Strategy to increase the raise to $2 billion.

The Stretch shares are structured to rank above Strategy’s other preferred classes such as Strike and Stride but remain subordinate to the company’s Strife securities and convertible bonds. A distinctive feature of these shares is the cumulative dividend structure, with rates that can be adjusted monthly. The dividend may increase at the company’s discretion or decrease in relation to changes in the one-month Secured Overnight Financing Rate (SOFR).

Sources familiar with the transaction told Bloomberg that final pricing occurred Thursday afternoon in New York.

Strategy has made clear that the funds will be used to expand its Bitcoin holdings. As of the latest company disclosure, Strategy owns approximately 607,770 Bitcoins, with a market value of about $43 billion. The company has consistently reinvested proceeds from equity and debt offerings into acquiring more Bitcoin, reinforcing its identity as a corporate vehicle for cryptocurrency accumulation.

This $2 billion capital raise is among the most significant funding rounds tied directly to Bitcoin accumulation by a public firm. It reflects broader institutional interest in crypto-related financial products and confidence in Strategy’s long-standing approach of using balance sheet financing to build Bitcoin reserves.

Michael Saylor, who stepped down as CEO in 2022 to focus exclusively on Bitcoin strategy, remains one of the most vocal proponents of Bitcoin as a superior store of value compared to traditional assets. The successful expansion of this offering underscore continued momentum in structured crypto-financial products for mainstream investors.