Strategy upsizes preferred 'Stretch' stock offering to $2 billion to buy more bitcoin

Bitcoin treasury firm Strategy plans to quadruple the size of its recently announced Series A Perpetual Stretch Preferred Stock offer to $2 billion from $500 million after strong demand for bitcoin‑focused shares, Bloomberg reported. Morgan Stanley, Barclays, Moelis, and TD Securities are bookrunners on the latest Stretch sale.

Proceeds from Strategy’s expanded facility are earmarked to fund additional bitcoin purchases. Last week, the company spent $739.9 million generated from share sales on 6,220 BTC, increasing its holdings to 607,770 , The Block’s data shows. That’s currently valued at over $72 billion and roughly 3% of bitcoin’s total supply of 21 million.

The company, formerly known as MicroStrategy, will offer Stretch shares at a price of $90 per share, a 10% discount to face value and the low end of a marketed range of $100. The securities carry an initial 9% annual dividend that Strategy can reset monthly.

Stretch, the company’s fourth preferred stock program , reportedly ranks senior to the firm’s Strike (STRK) and Stride (STRD) preferred stock and its common shares, but subordinate to its Strife (STRF) preferred series and outstanding convertible notes.

Earlier this week, TD Cowen said the company’s preferred‑stock arsenal could help Strategy lift its holdings to nearly 900,000 BTC by 2027, arguing each share controls more bitcoin today than 18 months ago despite aggressive issuance. Strategy’s net asset value premium, the percentage by which its market cap surpasses its BTC holdings, is justified since the company can effectively borrow at low rates and stockpile crypto’s largest asset, the brokerage stated .

Strategy’s common stock is trading around $414, giving the firm a market capitalization of $124 billion, according to The Block’s data dashboard .