Strategy, formerly MicroStrategy, has just announced plans to issue 2.1 billion USD in Perpetual Strife Preferred Stock (STRF), dubbed the 'gem' of the company's strategy. As the world's largest holder of Bitcoin with 576,000 BTC (worth approximately 64 billion USD), Strategy is attracting attention in the U.S. and Japan. This article summarizes the details of this plan, its impact on the crypto market, and lessons for investors.
Plan to issue STRF shares
According to a filing submitted to the U.S. Securities and Exchange Commission (SEC) on May 22, 2025, Strategy plans to raise 2.1 billion USD through preferred stock #STRF , first introduced in March 2025. STRF offers a 10% cash dividend each year and is only available for institutional investors. The stock has a mechanism to increase dividends if Strategy fails to make timely payments, attracting investors seeking stable returns. Unlike the first issuance (increasing from 500 million to 723 million USD), STRF this time will be traded on Nasdaq at market price, currently at 99.8 USD/share, up 16% from the starting price of 85 USD (according to Yahoo Finance, May 22, 2025).
Chairman and CEO Phong Le stated that STRF achieved a trading volume of 31 million USD/day, demonstrating positive market reception. Co-founder Michael Saylor called STRF a 'gem' in Strategy's strategy, emphasizing that the company is cautious in its issuance to attract a new group of investors, especially those wary of Bitcoin's volatility.
Impact on the crypto market
Strategy currently holds 576,000 $BTC , worth approximately 64 billion USD with Bitcoin reaching a peak of 111,000 USD (according to Binance, May 22, 2025). The company recently added 764 million USD in Bitcoin to its reserves last week, solidifying its position as the largest institutional investor in the crypto space. The plan to raise 2.1 billion USD through STRF is part of a larger strategy, including:
Raise 21 billion USD through STRK preferred stock.
Raise 21 billion USD through common stock issuance.
STRF is designed as a low-volatility option, allowing investors to gain indirect access to Bitcoin without needing to own it directly. Saylor emphasized that STRF is a tool to bring 'a new group of investors into the Bitcoin universe.' In the U.S., where funds #ETFbitcoin like BlackRock's IBIT are thriving, STRF could attract traditional financial institutions. Japan, with its growing interest in blockchain, is also a potential market for this strategy.
Strategy's stock rose 2.8% to 413 USD on May 22, 2025, but has not surpassed its historical peak of 543 USD in November 2024 (according to Yahoo Finance). The price increase of Bitcoin is driving Strategy's initiatives, but also poses challenges regarding profit expectations.
Lessons for investors
Strategy's plan offers many lessons:
Long-term vision: Accumulating Bitcoin and issuing STRF shows the potential of crypto in corporate financial strategies.
Portfolio diversification: Combining direct investment in Bitcoin with products like STRF or ETFs to reduce risk.
Follow large institutions: The moves of #strategy and BlackRock are important indicators of market trends.
Thorough research: Check information from Binance, CoinMarketCap to assess the real value of crypto assets.
Investor suggestions
Explore products like STRF for indirect access to Bitcoin, especially in the U.S. and Japan.
Update Strategy's strategy through sources like Binance, Yahoo Finance.
Evaluate companies integrating Bitcoin like Strategy to find investment opportunities.
Risk warning
Investing in cryptocurrencies, including Bitcoin and products like STRF, carries high risks due to price volatility and market risks. The information in this article is for reference only and does not constitute investment advice. Please conduct thorough research (DYOR) before making any investment decisions.