Strategy upsizes preferred 'Stretch' stock offering to $2 billion to buy more bitcoin
Quick Take Strategy has boosted its Stretch preferred offering from $500 million to $2 billion, pricing shares at $90 with a 9% cumulative dividend. The proceeds will finance additional bitcoin buys, expanding Strategy’s current 607,770 BTC treasury.
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 .
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Powell: Employment is weakening, inflation remains high, and no one is talking about rate hikes now
Powell pointed out that the U.S. labor market is cooling, with hiring and layoffs slowing down and the unemployment rate rising to 4.4%. Core PCE inflation remains above the 2% target, but service inflation is slowing. The Federal Reserve has cut interest rates by 25 basis points and started purchasing short-term Treasury bonds, emphasizing that the policy path needs to balance risks between employment and inflation. Future policies will be adjusted based on data. Summary generated by Mars AI. This summary is produced by the Mars AI model, and the accuracy and completeness of its generated content are still in the process of iterative improvement.
$RAVE TGE Countdown: When Clubbing Becomes an On-Chain Economic Activity, the True Web3 Breakthrough Moment Arrives
RaveDAO is rapidly growing into an open cultural ecosystem driven by entertainment, becoming a key infrastructure for Web3 to achieve real-world adoption and mainstream breakthrough.
A "hawkish rate cut" that's not so "hawkish," and balance sheet expansion that's "not QE"
The Federal Reserve has cut interest rates by another 25 basis points as expected, still projecting one rate cut next year, and has launched an RMP to purchase $40 billion in short-term bonds.
Trending news
MoreCrypto prices
More
