Fintech giant MicroStrategy, the company renowned for its aggressive investment strategy focused on Bitcoin, announced plans Wednesday to significantly expand a newly launched preferred stock offering.

Previously known as MicroStrategy before dropping the ‘Micro’ in a controversial rename, the company led by Executive Chairman Michael Saylor increased its Series A Perpetual Stride Preferred Stock (STRD) offering from an initially targeted $250 million to an ambitious $1 billion—in nearly fourfold growth.

Proceeds Allocated Primarily for Bitcoin Acquisition

This offering is expected to generate approximately $979.7 million in net proceeds, the company anticipates stating. MicroStrategy intends to utilize substantially all of these funds for “general corporate purposes,” with “buying more Bitcoin” prominently featured among the planned expenditures.

“The point of our engine is to generate BTC torque via surgical management of our ATMs (at-the-market offerings) in every single trading day.”
— Michael Saylor, Executive Chairman, MicroStrategy

The STRD shares will trade at a price of $85 per share. The offering covers up to 11,764,700 shares to be issued upon closing, expected to occur on June 10th, subject to customary closing conditions.

Investors will receive a 10% annual dividend, payable quarterly commencing September 30, 2025, contingent upon declaration by MicroStrategy’s board of directors.

Unique Structure of STRD Stock

The STRD offering introduces a financing structure distinct from some of MicroStrategy’s previous preferred stock issues (STRF and STRK). Notably:

• No missed dividends: Unlike past instruments, outstanding dividends cannot accrue if not paid.
• No conversion: STRD shares cannot be converted into common stock.
• No maturity date: The shares have no specified redemption date.
• No calls: MicroStrategy cannot redeem STRD shares at its discretion for their entire life.

MicroStrategy has characterized STRD as its “high-yield credit instrument,” positioning it as a potentially more lucrative option compared to its earlier preferred stock offerings.

“Compared to STRK or STRF, it should be a higher-yielding preferred instrument.”
— Michael Saylor, Executive Chairman, MicroStrategy

Liquidity Structure and Redemption Provisions

The new offering includes protective measures for both the company and shareholders. Key terms include:

• Redemption right: MicroStrategy retains the right to redeem all outstanding STRD shares if they cease to represent at least 25% of the company’s total shares.
• Shareholder put option: Investors holding a majority of STRD shares can demand a $100-per-share buyback, plus any accrued but unpaid dividends, upon a “fundamental change” event like a restructuring or sale.
• Liquidation preference: In the event of a liquidation, each STRD share will be entitled to a daily liquidation preference calculated based on recent market performance, trading prices, and historical averages.

Accelerated Bitcoin Acquisition

The core objective driving this fresh capital infusion remains clear: further accumulation of the world’s largest cryptocurrency.

MicroStrategy announced in early May that it held roughly 581,000 BTC, valuing its Bitcoin holdings assessment at approximately $61.2 billion at the time, assuming a Bitcoin price near $106,000.

With potential access to nearly $1 billion, the company could acquire roughly 9,700 additional BTC at roughly current valuations, marking a substantial increase from the 705 BTC acquired via its previous $75.1 million at-the-market offering launched in April.

Market Reaction and Analyst Perspectives

Wall Street and cryptocurrency markets are closely monitoring MicroStrategy’s relentless pursuit of on-chain Bitcoin ownership.

A recent VanEck report highlighted that MicroStrategy (MSTR) stock was trading at a significant +112% premium relative to the sum of the fair value of its existing Bitcoin holdings and core software business, attributing the valuation gap primarily to anticipated future purchases and strong investor sentiment.

However, some analysts have cautioned that less experienced retail investors might be overpaying for exposure to Bitcoin through these specialized stocks, which increasingly track the digital asset’s future trajectory rather than MicroStrategy’s fundamental software business performance. Some recommend seeking direct Bitcoin ownership in self-custody wallets as an alternative investment strategy.