Strategy will launch a $21 billion program to raise money by selling a special type of stock. This stock—the 8% Series A Perpetual Strike Preferred Stock—will enable the company to raise funds to buy more Bitcoin and support its day-to-day operations.
Strategy, the company led by Michael Saylor, announced on March 10, 2025, that it will launch a $21 billion program to raise money by selling a special type of stock. This stock, called 8% Series A Perpetual Strike Preferred Stock, will help the company gather funds to buy more Bitcoin and support its day-to-day operations.
Strategy’s new program is an at-the-market (ATM) offering. This allows the company to sell its preferred stock directly to the public at its discretion, provided the total amount raised does not exceed $21 billion.
Preferred stock, unlike regular stock, offers certain advantages. Buyers receive fixed payments, known as dividends, before regular shareholders.
Here, Strategy offers an 8% dividend to investors buying the preferred stock, which also comes with an option to switch it to Class A common stock later. This gives investors the flexibility to potentially capitalize on a future rise in the value of Strategy’s regular stock.
Strategy has stated that the major reason for raising this huge sum of money is to buy more Bitcoin. The company already owns around 499,000 Bitcoin, making it one of the largest corporate holders of the cryptocurrency in the world.
Michael Saylor, the company’s chair, has long been a vocal supporter of Bitcoin, often describing it as “digital gold” that can protect against inflation and economic uncertainty.
However, Bitcoin is not the sole focus of this plan. The strategy also involves using some of the funds for general corporate purposes.
This includes supporting daily operations, paying employees, investing in new projects, and meeting financial needs.
By raising a significant amount, Strategy ensures it has sufficient cash to grow its business while maintaining its Bitcoin strategy.
Strategy has gained fame in recent years for its substantial investments in Bitcoin. Under Michael Saylor’s leadership, the company began purchasing Bitcoin in 2020, claiming it as a superior store of value compared to traditional assets like cash or gold.
Since then, Strategy has invested billions to expand its Bitcoin holdings, often borrowing money or selling stock to finance these acquisitions.
This approach has not been without controversy. Bitcoin’s price is highly volatile, capable of rising or falling sharply in a short period.
When Bitcoin’s price drops, Strategy’s stock price often declines as well, causing investor concern over the company’s heavy reliance on the cryptocurrency. Conversely, when Bitcoin’s price increases, Strategy’s stock tends to soar, rewarding the company’s bold strategy.
