Strategy Unveils $2.1 Billion Preferred Share Program Amid Lawsuit Over Bitcoin Losses
Strategy (Nasdaq: MSTR; STRK; STRF), the world’s largest corporate holder of Bitcoin, has announced a $2.1 billion at-the-market (ATM) program to issue its 10% Series A Perpetual Strife Preferred Stock (STRF), aiming to bolster its operations and expand its Bitcoin holdings. The company, formerly known as MicroStrategy, will offer these preferred shares primarily to institutional investors, providing a 10% annual cash dividend and an escalation mechanism that increases payouts if payments are missed. The STRF shares, which have risen 16% since launch, are designed to attract investors seeking lower volatility compared to Bitcoin or convertible debt.
The proceeds from the share issuance will be used for general corporate purposes, including the acquisition of additional Bitcoin and working capital. Strategy has already spent over $12.3 billion on Bitcoin purchases in 2025 alone, adding 129,830 BTC across 15 transactions. The company’s aggressive Bitcoin strategy has positioned it as a leader in the digital asset space, with current holdings valued at approximately $64 billion.
However, this fundraising initiative comes as Strategy faces heightened scrutiny and legal challenges. A class-action lawsuit was filed earlier this month, alleging that company executives misled investors about the risks associated with its Bitcoin-focused approach. The suit claims that Strategy failed to adequately disclose the impact of new accounting standards, which led to the reporting of a $5.91 billion unrealized loss on its digital assets in the first quarter of 2025. Plaintiffs argue that these omissions harmed investors by concealing significant financial risks.
In response, Strategy has stated it will “vigorously defend” itself, maintaining that all relevant financial information was properly disclosed and that its Bitcoin strategy remains transparent and aligned with shareholder interests. Executive Chairman Michael Saylor has described the STRF offering as “the crown jewel of our preferred strategy,” emphasizing its role in attracting a broader class of investors and providing a more stable investment option amid Bitcoin’s volatility.
Despite the legal headwinds, Strategy’s market capitalization stands at $110.1 billion, and its stock has delivered a 144.5% return over the past year. The company continues to pursue its vision of leveraging corporate treasury assets for Bitcoin accumulation, while simultaneously seeking to reassure investors and regulators about the transparency and prudence of its financial disclosures.