Strategy Wraps Up $711M STRF Offering, Expanding Bitcoin-Backed Capital Structure
25/3/2025
Strategy (MSTR), the Bitcoin-focused corporate giant, is set to close its latest capital raise on Tuesday, securing $711 million through the sale of its new perpetual preferred stock, STRF. The offering exceeded its initial $500 million goal, reinforcing the company’s aggressive approach to financing its BTC accumulation strategy.
The STRF issuance follows the success of Strategy’s first preferred stock, STRK, which raised $563 million. The latest sale includes 8.5 million STRF shares priced at $85 each, with proceeds earmarked for further Bitcoin purchases.
STRF: A Stable Yield Play
STRF is designed for investors prioritizing predictable income over volatility. The stock pays a 10% annual dividend based on a $100 stated value, with quarterly payouts. In cases of missed payments, the dividend rate increases by 1% per year, maxing out at 18%, incentivizing timely distributions.
Unlike common shares, STRF does not provide voting rights, but its structure offers a hedge against market swings. Strategy retains the right to redeem STRF under certain conditions, such as tax-related changes or if less than 25% of the original issuance remains.
STRF vs. STRK: Two Paths for Investors
While STRF offers a straightforward yield-focused approach, STRK includes a built-in equity conversion feature. STRK pays an 8% dividend but allows holders to convert shares into common stock at a 10:1 ratio if Strategy’s stock price reaches $1,000, making it more appealing to investors seeking both yield and long-term upside.
With STRF acting as a pure yield instrument and STRK providing potential capital appreciation, Strategy has created a dual offering catering to different investor preferences.
Supporting Dividends & Bitcoin Expansion
To sustain dividend obligations, Strategy will leverage a combination of operating cash flow, convertible debt issuances, and at-the-market (ATM) stock sales. The company has already deployed part of its ATM program to acquire an additional 130 BTC.
With $3.57 billion in ATM capacity remaining, Strategy is well-positioned to continue financing its Bitcoin purchases while maintaining shareholder commitments. The company’s stock gained over 10% on Monday, reflecting continued investor confidence as its BTC holdings grew to 506,137.
