Strategy Raises $4.2B STRD, Boosts Bitcoin Accumulation
Strategy, led by Michael Saylor, launched a $4.2 billion at-the-market offering of Series A Perpetual Stride Preferred Stock (STRD) at market price. The STRD preferred stock yields a 10% dividend and has no fixed maturity. Proceeds will fund Bitcoin accumulation, pay dividends and cover operational costs. The company paused weekly Bitcoin purchases from June 30 to July 9 after a $980 million underwritten offering in early July. Strategy now holds 597,325 BTC (≈3% of supply), valued at $64.4 billion with $22 billion unrealized gains. Shares will be sold gradually to avoid supply shocks and limit stock volatility. Analysts note strong demand for Bitcoin accumulation but warn leverage and equity dilution could heighten market volatility if prices fall.
Bullish
In the short term, Strategy’s $4.2 billion STRD offering signals renewed Bitcoin accumulation, likely boosting demand and supporting BTC prices. Issuing preferred stock at market price and using proceeds to buy Bitcoin reduces immediate supply shock and demonstrates commitment to accumulation, which traders view as bullish. Over the longer term, significant leverage and equity dilution could amplify volatility if Bitcoin prices decline sharply, but the overall intent to expand holdings underlines institutional confidence. Balancing funding costs with dividend obligations may pressure profitability but continues to validate Bitcoin’s role as a strategic asset. Therefore, the news is broadly bullish for Bitcoin.