Strategy has changed its capital raising strategy with a strong increase in demand for preferred stocks, significantly contributing to the expansion of the company's BTC reserve.
Focusing on preferred stocks helps Strategy minimize the dilution of common stock MSTR while leveraging a stable capital flow from high-yield stocks. This is a strategic move in 2025 to strengthen financial position and enhance Bitcoin investment.
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Strategy recorded a fundraising record of 141 million USD from preferred stocks last week.
The company has temporarily suspended the issuance of common stock to limit dilution, and the price of MSTR has risen to its highest level of the year.
The three types of preferred stocks STRK, STRF, and STRD all attract capital flows due to their attractive yields and different priority positions.
How has Strategy changed its capital raising in 2025?
According to CEO Michael Saylor, Strategy has begun shifting its capital raising focus to preferred stocks to reduce dilution of common stock MSTR and continue expanding its long-term Bitcoin reserve. The July report indicated that demand for STRK, STRF, and STRD preferred stocks peaked, contributing 141 million USD to the total fund.
This adjustment aligns with the BTC accumulation strategy of Strategy, thereby creating a stable capital source linked to dividend yields while keeping the common stock price at a premium compared to the net asset value of Bitcoin in storage.
Our preferred equity ATMs are seeing record demand. 141 million USD raised last week.
Michael Saylor, CEO Strategy, 07/16/2025
Why did Strategy suspend the issuance of common stock MSTR?
To avoid dilution of common stock, Strategy has stopped issuing over the past two weeks. This action helped the price of MSTR stock rise to its highest level of the year, $442.13, while narrowing the gap with the value of the held Bitcoin assets, enhancing the effectiveness of the ATM program.
The price of MSTR stock tends to rise when it records a premium compared to the underlying BTC value. This move is regarded by experts as a smart step in balancing capital raising and protecting shareholder value.
What are the outstanding characteristics of Strategy's preferred stocks?
Strategy's preferred stocks were issued in January, March, and June with the codes STRF, STRK, and STRD, each with different yields and payment preferences, catering to the diverse needs of investors.
Stock Code Yield Priority Position Recent Trading Price Characteristics STRF 10% Highest priority 117 USD (previously reached 126.48 USD) Lowest risk, stable dividend STRK 8% Second priority 118.13 USD (peak 125.75 USD) High yield, large liquidity STRD No mandatory dividend, higher rate Lowest position 93.28 USD Most recently issued, variable yield
These three preferred stock codes have continuously traded above the face value of 100 USD since June, demonstrating market confidence in Strategy's capital expansion strategy in the current financial context.
What is Strategy's long-term capital raising strategy?
As of July 2025, Strategy has utilized 50% of the automatic share sale (ATM) program for MSTR, with plans to extend it until 2030. The company holds about 3% of the total Bitcoin supply and is expected to continue accumulating to maintain its position in the cryptocurrency market.
Focusing on preferred stocks with attractive yields also provides a stable income stream, supporting the process of further BTC purchases and ensuring long-term sustainability.
The shift to preferred shares supports both capital growth and long-term BTC accumulation without diluting common shareholders.
Gabriel Dechaine, blockchain finance expert, 2025
Frequently Asked Questions
What is Strategy's new capital raising strategy? Strategy focuses on raising funds through preferred stocks, creating a stable capital stream and reducing dilution of common stock. Why did Strategy suspend the issuance of common stock MSTR? To avoid dilution and raise the stock price higher, helping to optimize net asset value and the implementation of the ATM program. What strengths do the preferred stocks STRK, STRF, STRD have? Each type has yields from 8% to 10%, different payment priorities, attracting investors who prefer fixed income. How much % of the Bitcoin supply has Strategy accumulated? Strategy currently owns about 3% of the total Bitcoin supply and continues to expand in the long term. How is Strategy's ATM stock sale program utilized? As of July 2025, Strategy has used 50% of the MSTR ATM program limit, intending to maintain fundraising until 2030.
Source: https://tintucbitcoin.com/preferred-equity-dan-dau-phan-bo-von-tien-dien-tu/
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