Strategy Seeks $500 Million Through New Dividend Stock to Expand Bitcoin Holdings

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Business intelligence firm Strategy (MSTR) has unveiled plans to raise up to $500 million through a new issuance of preferred stock, aiming to increase its already substantial Bitcoin holdings. The offering, dubbed the STRC Preferred Series short for “Stretch” carries a fixed 9% dividend and will be sold in five million $100 units. Proceeds will go directly toward further Bitcoin acquisitions, reinforcing the company’s aggressive pro-crypto stance.

The STRC shares represent the latest expansion of Strategy’s broader financing approach. They join an existing lineup of preferred stock series STRK, STRF, and STRD as well as an active common stock at-the-market (ATM) program, which raised $736 million just last week. Like previous offerings, this new series appears tailored to attract yield-seeking investors with a risk appetite for crypto-aligned assets, while preserving shareholder flexibility and providing additional capital for Bitcoin investments.

With over 600,000 Bitcoin (BTC) on its balance sheet worth approximately $72 billion at current valuations, Strategy remains the largest publicly traded corporate holder of the digital currency. The company’s high-conviction approach has drawn both criticism and praise, but its commitment to Bitcoin as a reserve asset has been unwavering.

While the broader tech and crypto sectors have experienced high volatility in 2024, Strategy’s stock (MSTR) has remained relatively steady in after-hours trading following the announcement, reflecting continued investor interest in the company’s Bitcoin-focused business model. The newly issued STRC preferred shares are structured to pay consistent income, potentially appealing to conservative investors willing to bet on crypto’s long-term upside without direct coin exposure.This fundraising strategy signals a continued divergence from traditional corporate treasury practices. Instead of holding cash or low-yield bonds, Strategy is leaning fully into Bitcoin as a strategic asset. For investors aligned with this vision, especially those skeptical of inflation and looking for hard-asset exposure, the company’s unique blend of tech and financial engineering could be an appealing alternative in a market still sorting out its post-pandemic footing.