Strategy Secures $715M from Preferred Stock Offering to Increase Bitcoin Holdings

Strategy has raised $715 million through a preferred stock offering (STRE Stock), aiming to expand its Bitcoin holdings.

The company plans to use the funds to strengthen its crypto portfolio and boost long-term digital asset growth. The sale announcement includes 7.75 million shares at €80 each and will be completed on November 13 once all normal procedures are done

The major financial institutions and firms managing the sale include Barclays, Morgan Stanley, Moelis & Company, SG America Securities, TD Securities, Canaccord, Genuity, and StoneX Financial.

After accounting for related expenses, Strategy expects to receive about €608.8 million ($702.2 million) in net proceeds, based on an exchange rate of €1 for $1.1534.

Each STRE share pays a 10% yearly dividend, given every three months in cash starting December 31, 2025, if approved by the board. If there is a missing payment, the company will raise the unpaid amount each quarter, starting at 11% and adding 1% every quarter, until it reaches a maximum rate of 18% per year or until all dividends are fully paid.

Strategy Joins Top 10 U.S. Corporate Treasuries with $64.2B Bitcoin Reserve

On November 3, Strategy added 397 Bitcoins, valued at $45.6 million, to its holdings, bringing its total to 641,205 Bitcoins purchased for approximately $47.49 billion.

With its steady Bitcoin accumulation, Strategy has become one of the 10 largest Corporate treasuries in the U.S., surpassing NVIDIA. The company now holds $64.2 billion in reserves, ranking just behind major firms such as Berkshire Hathaway, Amazon, Google, Microsoft, Apple, Ford, Meta, and General Motors.

Notably, Strategy is the only company in this group that uses Bitcoin, rather than cash, as its main reserve asset.

Strategy’s Bitcoin Gains Fall to $11.7B After BTC Price Drop

Despite Strategy’s strong treasury position, its unrealized Bitcoin gains have dropped to $11.7 billion from over $15 billion last month due to Bitcoin’s recent correction.

The repeated drop of Bitcoin’s price to $100K has made investors more cautious, slowing down Bitcoin purchases by both institutions and regular investors.

Bitcoin is currently trading around $101,479, down more than 7% over the past week, and has attempted to rise above $104,000 twice in the last four days.