MSTR Announces Plan to Sell $500M of New Perpetual Preferred Stock to Buy Bitcoin

On the 18th of March, Michael Saylor, founder of Strategy (formerly MicroStrategy), announced a plan to sell $500M worth of new 'perpetual preferred stock' (STRF)

On March 18, Michael Saylor, CEO of Strategy (formerly MicroStrategy) (NASDAQ:MSTR), announced plans to sell $500M new ‘perpetual preferred stock’ (STRF) for Bitcoin (BTC) buys.

Recently, the firm had issued another preferred stock ‘STRK’ for similar BTC objectives. This was part of the firm’s goal to raise $21B through stock issuance and another $21B through debt (convertible notes) for BTC buys.

Mixed views on Strategy’s plans

Clarifying the difference between Strategy’s new category of stock issuance, Bitwise’s Head of Alpha, Jeff Park, said, “You can buy STRK today for a 9.4% yield with upside convertibility or STRF for a 10% yield with virtually no redemption feature.”

Simply put, STRK could be swapped for MSTR, but STRF doesn't have such a feature and carries more risk.

However, some crypto community members viewed Strategy’s ‘high leverage’ as a risk factor for the entire BTC market. One pseudonymous market analyst, Wazz Crypto, stated, “This id*ot is making Bitcoin uninvestable at this point. Can it even be digital gold anymore if it’s tied to the solvency of a single company?”

Another user, Simon Dixon, termed it a ‘next-level risk’ that could require a bailout if it goes under.

“Strategy’s announcement of a perpetual 10% dividend paid in dollars—despite lacking sufficient dollar revenue & operating with a Bitcoin-based balance sheet—is next-level risk.”

However, Bitmex Research clarified that the firm could avoid paying MSTR and STRF holders dividends.

“Seems $MSTR can avoid paying these 10% to 18% dividends "for any reason." The likely outcome here is class A $MSTR shareholders never ever get a dividend payment.”

Is Trump bailing out Strategy?

For his part, long-term BTC critic Peter Schiff termed the new stock issuance ‘ridiculous’ and added, “The only thing keeping it (BTC) from deflating completely is the Trump administration’s support. Once that goes, it’s all over for Bitcoin and $MSTR.”

Compared to last quarter, the firm’s BTC buying pace has slowed in 2025. On 16th March, it bought 130 BTC, increasing its stash to 499,226 coins - a 2.3% control of total BTC.

As of this writing, MSTR was valued at $282, down 48% from its recent highs of $543, following recent BTC losses. In the past two weeks, it fluctuated between $230 and $300 as BTC remained below $90K over the same period.

On a year-to-date (YTD) performance, MSTR held the risk-off sentiment better and was down only 5% compared to BTC’s 11% decline.

Last week, MSTR posted a 26% gain as BTC retested $85K, suggesting the stock could post a strong recovery if the cryptocurrency reversed its losses.

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