- Strategy Inc raises $722M by expanding Strife stock sale to fund Bitcoin purchases.
- Company now holds 499,226 BTC worth over $33.1B after latest $10.7M Bitcoin buy.
- STRF stock offers 10% fixed cash dividend with no Bitcoin upside or equity conversion.
The business intelligence firm Strategy Inc. has elevated the Strife (STRF) perpetual preferred stock offer by expanding its scope to collect up to $722 million. Steanna Capital Inc determined an initial offer of 500 million dollars but responded to high investor interest by extending the shares to 8.5 million at a price of $85 each to reach approximately $711 million in proceedings.
The firm, previously known as MicroStrategy, introduced Strife as a new financing mechanism to support its Bitcoin accumulation strategy. Before this, the company utilized Convertible Senior Notes, a debt issuance with long-term maturity, to fund Bitcoin purchases. The shift to Strife is part of Strategy's broader plan to solidify its position as a key Bitcoin holder.
Fixed Dividend and Investment Structure
The STRF preferred stock carries a fixed 10% annual dividend, payable in cash, based on a face value of $100 per share. Unlike convertible securities, STRF shares do not provide equity conversion rights or exposure to Bitcoin’s price movements. Instead, they serve as a fixed-income investment option for those seeking stable returns.
A key feature of the offering is its dividend escalation clause. If Strategy delays a dividend payment, the rate increases by one percentage point per year, with a maximum cap of 18%. This clause raises concerns about the company’s ability to sustain long-term dividend payments, given its ongoing need for capital infusion.
Bitcoin Holdings and Capital Management
Strategy has kept up its practice of adding Bitcoin to its balance sheet on a set schedule. The corporation invested $10.7 million to acquire 130 Bitcoin units during this week which increased its total BTC holdings to 499,226 units worth $33.1 billion.
Despite its substantial Bitcoin reserves, the company has limited cash holdings, reportedly under $50 million. Its core software business has also faced ongoing financial challenges. Public filings indicate that future dividend payments may depend on additional capital raises through debt or equity issuance.
Major financial institutions Morgan Stanley, Barclays Capital, and Citigroup Global Markets manage the issuance of Slide Venture Fund LP units. In addition to AmeriVet Securities, Bancroft Capital BTIG and The Benchmark Company share the co-manager role.
Executive Chairman Michael Saylor remains a strong proponent of Bitcoin as a financial asset. During the 2025 Blockworks Digital Asset Summit, he described Bitcoin as an essential financial protocol and an ethical commodity. His vision aligns with broader geopolitical discussions on digital currency adoption.
Amid global financial uncertainty, Saylor continues to emphasize Bitcoin’s role in economic stability. His recent statement, “EUR gonna need BTC,” reflects his belief in Bitcoin’s significance within the evolving monetary landscape.