Strategy—formerly MicroStrategy—announced the launch of $STRF, nicknamed “Strife,” a new perpetual preferred stock offering aimed at institutional investors and select non-institutional participants. This move, detailed in a press release from the Tysons Corner, Virginia-based firm, builds on its established trajectory as the world’s largest Bitcoin treasury company. With a market capitalization of $84.5 billion as of February 2025, Strategy continues to deepen its commitment to Bitcoin, using innovative financial instruments to fund acquisitions. The $STRF offering, detailed in posts on X and SEC filings, reflects a strategic effort to raise capital in a volatile crypto landscape as of March 18, 2025.
A New Financial Instrument Emerges
Strategy’s latest offering introduces 5 million shares of Series A Perpetual Strife Preferred Stock, ticker $STRF, designed to generate up to $500 million if fully subscribed. Announced on March 18 via Strategy’s official X account, the stock carries a 10% fixed annual dividend, payable quarterly starting June 30, 2025. Unlike its prior $STRK offering—7.3 million shares at 8% launched in January 2025—this new tranche escalates dividends to 11% if unpaid, potentially rising to 18% over time, per an SEC filing summary. The funds are earmarked for general corporate purposes, with a primary focus on acquiring additional Bitcoin, reinforcing Strategy’s identity as a Bitcoin proxy.
The perpetual nature of $STRF means it has no maturity date, akin to equity, yet offers fixed dividends like debt. Investors can convert shares into Strategy’s Class A common stock (MSTR), though specific terms remain undisclosed as of this writing.
Building on a Bitcoin Legacy
Strategy’s pivot to $STRF follows a robust history of capital raises tied to Bitcoin. Since adopting BTC as its primary treasury reserve asset in 2020 under Michael Saylor’s leadership, the company has amassed 499,096 BTC—valued at over $47 billion—by February 24, 2025. Its $STRK offering raised $563.4 million net proceeds in January, settled February 5, with shares priced at $80 and a liquidation preference of $100 each.
The $STRF terms offer investor protections: a $100 initial liquidation preference adjusts daily based on market conditions, and redemption rights kick in if outstanding shares drop below 25% of the total issued or if tax events occur. Morgan Stanley, Barclays, Citigroup, and Moelis & Company serve as joint book-runners, signaling strong institutional backing.
Market Context and Bitcoin’s Role
As of March 18, 2025, Bitcoin trades at approximately $83,000, down from a 2024 peak above $109,000, reflecting a volatile yet resilient market (Markets Insider, March 14 data). Strategy’s stock (MSTR) has faced pressure, dropping over 20% since February, while $STRK rose 3%, showing less correlation with BTC (-7%) and MSTR (26%). This stability makes $STRF appealing to risk-averse investors seeking yield amid crypto fluctuations.
The firm’s Bitcoin holdings, purchased at an average of $66,357 per BTC, underscore its high-conviction strategy. The $STRF launch aligns with a February 24 purchase of 20,356 BTC for $2 billion, pushing its total investment to $33.1 billion. This relentless accumulation persists despite a Q4 2024 earnings miss—revenues fell and losses widened—highlighting Bitcoin as the core value driver over its legacy analytics business.
Strategic Implications
The $STRF offering isn’t without risks. Its value ties to Strategy’s performance and Bitcoin’s price, which could destabilize dividends or conversions if BTC crashes. The ATM structure risks diluting common shareholders, a concern raised by CoinDesk’s James Van Straten, noting $STRK’s potential upside could mirror MSTR’s past pressures. Regulatory shifts or tax events could also trigger redemption, though the CFTC-regulated framework offers some stability.
For institutional investors—pension funds, banks—$STRF’s 10% yield exceeds the 7.55% average for preferred stocks, appealing to those seeking Tier 1 capital buffers. Retail investors, limited to “select” non-institutional buyers, face higher entry barriers but gain a hybrid security with upside potential if MSTR exceeds $1,000 from its $262.55 close.
A Human Perspective
To those tracking Strategy’s journey, $STRF feels like a natural evolution—a calculated bet on Bitcoin’s staying power. It’s less a gamble than a statement: a company doubling down on a vision that’s weathered skepticism and market swings. For investors, it’s a choice between steady dividends and the wild ride of crypto exposure, wrapped in a single package.
Looking Ahead
Strategy’s $STRF launch on March 18, 2025, signals confidence in Bitcoin’s future, even as the crypto market cools. Whether it scales to rival $STRK’s $21 billion ambition or remains a niche tool depends on execution and BTC’s trajectory. For now, it’s a bold step in a saga that’s redefined corporate treasury strategies, inviting scrutiny and curiosity in equal measure.
Disclaimer: TrueToCrypto.com (the “Website”) is for general informational purposes only and is obtained from independent sources that are believed to be reliable. However, TrueToCrypto.com, its owners, affiliates, officers, employees, and agents (collectively, “We,” “Us,” or “Our”) make no representations or warranties, express or implied, as to the accuracy, completeness, timeliness, reliability, or suitability of the information contained on or accessed through this Website. Further read Disclaimer.
