Strategy Launches $500 Million Preferred Stock Offering to Fund Bitcoin Purchases

The STRF stock offers a 10% annual dividend and targets institutional investors seeking lower-volatility exposure to Bitcoin.

Strategy, formerly MicroStrategy, has announced the issuance of its Series A Perpetual Strife Preferred Stock (STRF) to raise $500 million for Bitcoin acquisitions.
The STRF stock will pay a fixed 10% annual cash dividend, compounding up to 18% for unpaid amounts, with the first dividend scheduled for June 30, 2025.
The offering is exclusive to institutional investors and is expected to begin trading on Nasdaq within 30 days.
Strategy’s cumulative annual dividend obligation from its STRK and STRF offerings could reach $108.4 million if fully executed, raising concerns about its financial sustainability.
The company recently purchased 130 BTC for $10.7 million, increasing its total Bitcoin holdings to 499,226 tokens, representing a marginal 0.026% increase.