MicroStrategy Prices $2.47B Preferred Stock Offering to Fuel Bitcoin Buying Spree

Introduction: MicroStrategy Doubles Down on Bitcoin with Record-Breaking Offering

MicroStrategy, the enterprise software company turned Bitcoin powerhouse, has priced its latest preferred stock offering at $2.47 billion, signaling another aggressive move to expand its Bitcoin holdings. The company upsized its initial offering from $500 million to 28,011,111 shares of its variable-rate perpetual preferred stock ($STRC) at $90 per share, with settlement expected on July 29, 2025.

Proceeds from the sale will be used for general corporate purposes, including the acquisition of more Bitcoin—potentially adding billions to its already massive 607,770 BTC treasury, valued at approximately $70.4 billion as of July 25, 2025. This latest offering reinforces MicroStrategy’s unwavering commitment to Bitcoin as a core treasury reserve asset under the leadership of Michael Saylor.

Breaking Down the $STRC Preferred Stock Offering

Key Details of the $2.47 Billion Raise

• Offering Size: 28,011,111 shares at $90 each
• Total Gross Proceeds: ~$2.52 billion
• Expected Net Proceeds: ~$2.474 billion (after discounts and expenses)
• Dividend Structure: Variable rate starting at 9% annually, adjustable monthly
• Settlement Date: July 29, 2025

This marks MicroStrategy’s largest single fundraising effort in 2025 explicitly aimed at acquiring more Bitcoin. The company has consistently used debt and equity offerings to bolster its BTC reserves since adopting its Bitcoin-first treasury strategy in August 2020.

Comparing MicroStrategy’s Preferred Stock Suite

MicroStrategy now has four major preferred stock instruments:

1. $STRK (“Strike”) – 8% Series A perpetual convertible preferred stock
2. $STRF (“Strife”) – 10% Series A perpetual cumulative preferred stock
3. $STRD (“Stride”) – 10% Series A perpetual non-cumulative preferred stock
4. $STRC (“Stretch”) – Variable-rate Series A perpetual stretch preferred stock (newest)

The introduction of $STRC is notable due to its flexible dividend structure—starting at 9%, but adjustable monthly to maintain share price stability near $100. This contrasts with fixed-rate offerings like $STRF and $STRD, which offer a locked-in return for investors.

MicroStrategy’s Bitcoin Treasury: A $70 Billion Behemoth

Current Holdings & Market Impact

As of July 25, 2025:

• Total BTC Held: 607,770 BTC
• Value at Current Prices (~$115,847/BTC): ~$70.4 billion

MicroStrategy remains the largest corporate holder of Bitcoin, far surpassing other publicly traded companies like Tesla and Block (formerly Square). Its aggressive accumulation strategy has turned it into a proxy for institutional Bitcoin adoption.

Historical Context: MicroStrategy’s Bitcoin Buying Spree

Since August 2020, MicroStrategy has executed multiple capital raises to fund Bitcoin purchases:

• 2020: Initial $250 million purchase (~21,454 BTC)
• 2021: Multiple debt offerings totaling billions (including a $500 million junk bond sale)
• 2023-2024: Continued equity and convertible note sales to buy BTC during market downturns
• 2025: Latest $2.47B raise—potentially adding ~21,300+ BTC (at current prices)

This latest offering follows a pattern of leveraging capital markets to expand its Bitcoin position rather than using operational cash flow—a high-conviction bet on BTC as a long-term store of value.

Why Investors Are Backing MicroStrategy’s Bitcoin Bet

Institutional Confidence in BTC as Collateral

MicroStrategy’s ability to repeatedly raise billions via debt and equity offerings highlights growing institutional acceptance of Bitcoin as a legitimate treasury asset. Investors are willing to finance these purchases because:

1. Bitcoin’s Scarcity & Appreciation Potential – With a fixed supply of 21 million coins, BTC is viewed as an inflation hedge.
2. MicroStrategy’s Track Record – The company has consistently bought BTC at strategic points, benefiting from long-term appreciation.
3. Preferred Stock Appeal – Fixed or variable dividends provide yield-seeking investors an alternative to volatile crypto markets.

Risks & Considerations for Investors

While MicroStrategy’s strategy has paid off so far, risks remain:

• Bitcoin Price Volatility: A prolonged bear market could pressure the company’s balance sheet.
• Regulatory Uncertainty: Changing crypto policies could impact corporate holdings.
• Dividend Adjustments: The variable-rate nature of $STRC introduces uncertainty for income-focused investors.

Market Reactions & What Comes Next

Industry Response & Analyst Views

The announcement was met with enthusiasm from Bitcoin advocates:

• Swan Bitcoin called it the “biggest single corporate #Bitcoin buy plan of 2025.”
• Crypto analysts speculate whether other firms will follow MicroStrategy’s lead in using capital markets for BTC acquisitions.

However, traditional financial analysts remain divided—some praise the bold strategy, while others warn of over-leverage risks if Bitcoin faces a prolonged downturn.

What to Watch in the Coming Months

1. Bitcoin Purchases: How much BTC will MicroStrategy acquire with the new funds?
2. Market Sentiment: Will other corporations accelerate their own Bitcoin strategies?
3. Regulatory Developments: Could new policies impact corporate crypto holdings?

Conclusion: MicroStrategy Reinforces Its Role as a Bitcoin Powerhouse

MicroStrategy’s latest $2.47 billion preferred stock offering cements its position as the most aggressive corporate buyer of Bitcoin in history. By leveraging capital markets rather than relying solely on profits, Michael Saylor continues to push his vision of BTC as the ultimate treasury asset—a bet that has so far yielded massive returns for shareholders.

For crypto investors and institutions alike, MicroStrategy serves as both a case study and a bellwether—demonstrating how corporations can integrate Bitcoin into long-term financial strategies while navigating market volatility and regulatory landscapes. As the company prepares to deploy another multi-billion-dollar injection into BTC, all eyes will be on whether this move further accelerates institutional adoption or faces new challenges in an evolving financial ecosystem.