Strategy’s at it again – raising money to (you guessed it) buy more Bitcoin.
But this time, they’re taking a different approach. In a bold maneuver, Strategy (formerly MicroStrategy), chaired by Michael Saylor, expanded its latest preferred equity offering from $500M to $2B – solidifying its status as one of the most aggressive corporate Bitcoin acquirers in history.
Stretch joins a growing family of BTC-backed preferred securities launched by Strategy this year, including Stride (STRD), Strife (STRF), and Strike (STRK).
Like its predecessors, the new issuance will funnel proceeds directly into Bitcoin purchases, boosting Strategy’s holdings to approximately 607,770 $BTC, valued at about $72B (roughly 3% of all Bitcoin mined globally).
Saylor’s financial design centers around a self‑reinforcing capital model: issue preferred equity, deploy proceeds to buy Bitcoin, maintain investor confidence to support valuations, and reduce reliance on convertible debt via equity appreciation and conversion.
More speculatively, it may also be Saylor’s response to the recent growth of Ethereum yield-generating treasuries.
Namely: if it looks like a bit of a pyramid scheme, then it might be a pyramid scheme. The structure heavily depends on continued bullish sentiment and access to capital markets.
The bottom two layers – Bitcoin’s token price and Strategy’s share price – are vulnerable to sentiment reversals or the sudden lack of capital.
In theory, that could force Strategy to sell Bitcoin in contradiction to its long‑term HODL ethos. Despite the outward momentum, there’s more than a bit of risk built into Strategy’s approach.
Will Bitcoin keep rising, paying off for Strategy? What’s next to Strategy – and what’s next for Bitcoin?
Bitcoin the original and best – at least of the Layer 1 blockchains. But the underlying technology has come a long way since Bitcoin launched, and $BTC isn’t easily integrated with DeFi, dApps, and the rest of the growing crypto economy.
You could soon bridge $BTC from Bitcoin Layer 1 to Bitcoin Hyper Layer 2 and enjoy the latter’s faster transaction speeds and lower fees.
And on Bitcoin Hyper, you’ll be able to deploy both wrapped $BTC and $HYPER across the full range of DeFi platforms, whether it’s for lending, yield, or even NFT trading.
There’s intense interest in a protocol that can take Bitcoin to the next level. Most importantly, the L2 devnet is already in beta testing, so a meme-fueled Bitcoin upgrade may just be around the corner.
For now, Stretch cements Strategy’s formula: more equity raises, more Bitcoin buys, and more reliance on market confidence.
And if MSTR stock surges again, Strategy could raise additional equity and pay off the STRC raise; or simply buy back the equity.
The model thrives in bull phases; but it would face its harshest test if investor sentiment retreats.
As always, do your own research before investing in cryptocurrency presales or stocks. This isn’t financial advice.
