Strategy Raises $50 Million Through Preferred Shares to Fund Latest Bitcoin Purchase

• Strategy funds new Bitcoin purchase with $50M preferred stock, avoiding shareholder dilution.
• Company’s Bitcoin premium narrows to 1.06x, its lowest level in nearly two years.
• $715M euro-denominated share sale may mark Strategy’s largest Bitcoin buy since July.

Strategy, formerly known as MicroStrategy, has issued $50 million in preferred stock to finance a new Bitcoin acquisition, signaling a shift in its funding approach as its long-standing market premium tightens. The Virginia-based firm announced the sale on Monday, noting that it would use the proceeds to expand its Bitcoin holdings without diluting the interests of its existing common shareholders.

The company’s market capitalization recently reached $71 billion, representing a 1.06x premium to its $67.8 billion Bitcoin reserves. The ratio, often described as the multiple-to-net asset value (mNAV), has now fallen to its lowest level in nearly two years. At its peak last year, the figure exceeded 2.7x, underscoring the cooling investor sentiment around the Bitcoin proxy stock.

Preferred Stock Offering Replaces Common Equity Sales

Historically, Strategy relied on issuing common shares to purchase additional Bitcoin. However, as its premium compressed, the strategy became less efficient in increasing the number of Bitcoins owned per share. The latest issuance primarily consisted of the Variable Rate Series A Perpetual Stretch Preferred Stock, amounting to $26 million. Preferred shares differ from common stock in that they require dividend payments, making them a costlier but less dilutive form of capital.

TD Cowen analyst Lance Vitanza said in a research note that Strategy’s issuance pace could accelerate in early 2026, consistent with previous cycles where higher premiums spurred fresh capital inflows.

Market Response and Analyst Commentary

Strategy shares fell 0.3% on Monday to $241, according to Yahoo Finance. Bitcoin traded near $105,200, declining by  0.7%% over the same period, according to data from CoinGecko.

Short seller Jim Chanos confirmed on Saturday that he closed his long-running position against Strategy’s premium trade. His strategy involved going long Bitcoin while shorting Strategy shares, effectively betting that the company’s elevated mNAV would revert to historical averages.

Upcoming Euro-Denominated Preferred Stock Offering

Last week, Strategy disclosed plans to raise $715 million through its first euro-denominated preferred stock issuance, scheduled to launch Thursday in Luxembourg. If the company allocates those proceeds toward Bitcoin, it would represent its largest purchase since July, when it invested $2.46 billion.

Thomas Perfumo, global economist at Kraken, said recent acquisitions by large corporate holders have had a diminished market impact. He noted that slower treasury-driven Bitcoin flows have contributed to a moderation in overall crypto market momentum.