Strategy, the tech firm formerly known as MicroStrategy, is once again making headlines in the crypto world with a bold new financial manoeuvre. The company has filed a prospectus with the U.S. Securities and Exchange Commission (SEC) revealing plans to raise up to $2.1 billion by selling its newly minted 10.00% Series A Perpetual Strife Preferred Stock (ticker: STRF). This move marks the latest step in its aggressive expansion strategy centred around Bitcoin accumulation.
Unlike traditional stock offerings, the STRF sale will be conducted under an at-the-market (ATM) programme. This allows Strategy to sell shares gradually, capitalising on favourable market conditions. Shares can be offloaded through regular market transactions, large block trades, or private deals, giving the company flexibility and control.
The Nature of STRF: A Perpetual Commitment
What sets STRF apart is its structure. As a perpetual preferred stock, STRF does not mature, meaning Strategy has no obligation to repay the principal. Investors are instead compensated with a 10% dividend yield, which makes the instrument appealing for income-focused investors, especially those bullish on Bitcoin.
This structure effectively allows Strategy to raise funds without increasing its debt burden in the traditional sense. Instead, it trades long-term dividends for immediate capital, capital that will be used for “general corporate purposes,” including operational costs, business development, and most notably, the ongoing acquisition of Bitcoin.
Recent Bitcoin Purchase Adds to Growing Treasury
Strategy’s latest SEC filing comes hot on the heels of another significant Bitcoin purchase. Between 12 and 18 May 2025, the company acquired 7,390 BTC for approximately $764.9 million, paying an average price of $103,498 per coin. This purchase was funded through earlier equity sales, including its class A common stock (MSTR) and another preferred stock series, STRK.
As of now, Strategy holds 576,230 bitcoins, equivalent to over $64 billion in current market value. The company’s total investment into Bitcoin stands at around $40.2 billion, giving it a healthy unrealised gain of approximately $23.8 billion. These holdings account for roughly 2.7% of all Bitcoin in circulation, underscoring Strategy’s influence in the crypto market.
The 42/42 Vision: Doubling Down on Crypto Capitalisation
The STRF issuance is part of Strategy’s newly expanded “42/42” vision, a plan to raise $84 billion by 2027 through a mix of equity and convertible debt. This is double the target of its previous “21/21” strategy. With the earlier equity sale programme now exhausted, Strategy is turning to alternative instruments like STRF to continue fuelling its mission.
Founder and executive chairman Michael Saylor has made no secret of his belief in Bitcoin as a superior store of value and long-term hedge against inflation. Through the 42/42 strategy, Strategy aims to significantly scale its crypto holdings while maintaining corporate growth and operational flexibility.
Strategy’s High-Risk, High-Conviction Game Plan
Strategy’s approach is not without risk. Issuing perpetual preferred stock with a 10% dividend is a bold financial tactic, especially in a volatile market. However, the company’s paper profits and growing influence in the Bitcoin ecosystem indicate that, for now, the bet is paying off.
By embracing unconventional capital-raising methods and doubling down on Bitcoin, Strategy is positioning itself as a unique hybrid of tech enterprise and crypto hedge fund, one whose success could help shape the future narrative of institutional crypto investment.
