{"id":56521,"date":"2025-07-25T03:59:33","date_gmt":"2025-07-25T03:59:33","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/michael-saylors-strategy-upsizes-stretch-preferred-stock-sale-to-2-8-billion\/"},"modified":"2025-07-25T03:59:33","modified_gmt":"2025-07-25T03:59:33","slug":"michael-saylors-strategy-upsizes-stretch-preferred-stock-sale-to-2-8-billion","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/michael-saylors-strategy-upsizes-stretch-preferred-stock-sale-to-2-8-billion\/","title":{"rendered":"Michael Saylor&#8217;s Strategy upsizes &#8216;stretch&#8217; preferred stock sale to $2.8 billion"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div data-site=\"CoinJournal\">\n<div class=\"-mt-16  mb-8  lg:-mt-20  rounded-md  shadow-md\">\n<div class=\"relative  z-10  post-article-image  rounded  overflow-hidden\" data-site=\"CoinJournal\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/07\/image51-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/07\/image51-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/07\/image51-smartcrop-750x375.png\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/07\/image51-smartcrop-363x181.png\" type=\"image\/jpeg\"\/>\n<\/picture>                            <\/div>\n<\/p><\/div>\n<ul>\n<li>Michael Saylor\u2019s Strategy launched and upsized a new preferred stock offering from $500M to $2.8 billion.<\/li>\n<li>The \u2018Stretch\u2019 security promises a hefty 9% annual payout with no end date and a flexible, adjustable dividend.<\/li>\n<li>The deal is the latest in Saylor\u2019s years-long effort to transform Strategy into a financial vehicle to acquire Bitcoin.<\/li>\n<\/ul>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Michael Saylor\u2019s relentless quest to transform his company, Strategy, into a Bitcoin-acquiring financial juggernaut has reached a new level of ambition. <\/span><\/p>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">The firm has launched and then promptly upsized a novel preferred stock offering, raising a staggering $2.8 billion in a deal that further showcases Saylor\u2019s prowess in the capital markets and the insatiable investor appetite for exposure to the booming crypto market.<\/span><\/p>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">As crypto prices continue their upward march, Saylor\u2019s Bitcoin holding company, Strategy, has once again demonstrated its unique ability to tap into market enthusiasm. <\/span><\/p>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">The company priced a new kind of security on Thursday, which it has dubbed \u201cStretch.\u201d This offering promises buyers a hefty 9% annual payout with no specified end date, an unusual feature in the often-arcane world of preferred stock.<\/span><\/p>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Initially planned as a $500 million deal, the offering was upsized to $2.8 billion due to overwhelming demand, according to a person familiar with the transaction who asked to remain anonymous. <\/span><\/p>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">This move is the latest, and perhaps most audacious, demonstration of Saylor\u2019s Wall Street wizardry in his years-long effort to pivot a middling software firm, formerly known as MicroStrategy, into a corporate entity singularly obsessed with one goal: raising as much money as possible to acquire as many Bitcoin as possible. <\/span><\/p>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">At last count, the company\u2019s hoard stood at some 600,000 coins, worth approximately $70 billion.<\/span><\/p>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">\u201cThis is not the first financial engineering initiative by Strategy,\u201d noted Campbell Harvey, a professor at Duke University. \u201cIn any situation where your company is worth far more than fundamental value, you raise money.\u201d <\/span><\/p>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Since Strategy\u2019s first groundbreaking Bitcoin purchase in 2020, Saylor has employed a diverse range of financial instruments, including selling equity, issuing various types of debt, and layering multiple stacks of preferred shares. <\/span><\/p>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">In doing so, he has not only amassed a colossal Bitcoin treasury but has also inspired a fleet of imitators, spurring a new industry of public companies dedicated to the so-called \u201ctreasury strategy\u201d of buying and holding cryptocurrencies.<\/span><\/p>\n<h2 class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">The \u2018Stretch\u2019 security: a new twist on an old theme<\/span><\/h2>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Many of the previous financial instruments that have fueled Strategy\u2019s rise have proven to be more popular than expected, but even against that backdrop, the demand for \u201cStretch\u201d was notable. <\/span><\/p>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">The company\u2019s common shares rose 0.5% on Wednesday and are up an impressive 43% for the year.<\/span><\/p>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">The new \u201cStretch\u201d shares occupy a specific place in Strategy\u2019s complex and unusual capital structure. <\/span><\/p>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">They sit above the company\u2019s common stock and its other preferred shares\u2014which carry creative names like \u201cStrike\u201d and \u201cStride\u201d\u2014but remain subordinate to its convertible bonds and another preferred stock known as \u201cStrife.\u201d<\/span><\/p>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">A key feature that distinguishes \u201cStretch\u201d from earlier offerings is its flexible dividend. Unlike a fixed payout, this security allows Strategy to tweak the dividend rate. <\/span><\/p>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Each month, the firm will set a new payout rate with the aim of keeping the share price near the $100 mark, raising or lowering the dividend as needed to maintain this target. It\u2019s a unique combination of a dynamic pricing model and a trust exercise, and a clear reminder that in the world of financial engineering, Strategy often creates its own rules.<\/span><\/p>\n<h2 class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Diminishing returns? A discount to win over investors<\/span><\/h2>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">While this flexibility may appeal to Saylor\u2019s large and dedicated fan base of retail investors, it also introduces a new layer of uncertainty into an already complex capital structure. <\/span><\/p>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">There are some signs that Saylor\u2019s tactics may be facing somewhat diminishing returns, as the value of the company, relative to the Bitcoin it owns, has reportedly gone down.<\/span><\/p>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">In a move to win over investors for its latest offering, Strategy offered the \u201cStretch\u201d shares at a discount. The shares, which are set to carry an initial dividend of 9%, were sold for $90 each. <\/span><\/p>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">This was at the bottom of the marketed range and represents a discount to their face value of $100, according to the person familiar with the deal.<\/span><\/p>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">Despite the discount, the outsized demand for the deal provides the latest and most powerful sign of both Saylor\u2019s avid following and the continued speculative fervor that is running through the financial markets. <\/span><\/p>\n<p class=\"ng-star-inserted\"><span class=\"ng-star-inserted\">According to a previous Bloomberg report, major financial institutions including Morgan Stanley, Barclays Plc, Moelis &amp; Co., and TD Securities worked on this landmark deal.<\/span><\/p>\n<div class=\"ad-banner  container  pt-1\" data-partner=\"bitcoinpepe\">\n        <a href=\"https:\/\/bitcoinpepe.co\/en?utm_source=coinjournal&amp;utm_medium=banner&amp;utm_campaign=header\" target=\"_blank\" rel=\"nofollow sponsored noopener\"><br \/>\n            <img src=\"https:\/\/coinjournal.net\/wp-content\/themes\/c1-base\/dist\/img\/ad\/blockovate\/en-4.png\"\/><br \/>\n        <\/a>\n    <\/div>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/michael-saylors-strategy-upsizes-stretch-preferred-stock-sale-to-2-8-billion\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) Michael Saylor\u2019s Strategy launched and upsized a new preferred stock offering from $500M to $2.8 billion. The \u2018Stretch\u2019 security promises a hefty 9% annual payout with no end date and a flexible, adjustable dividend. The deal is the latest in Saylor\u2019s [&hellip;]<\/p>\n","protected":false},"author":3947362378,"featured_media":56522,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/56521"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362378"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=56521"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/56521\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/56522"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=56521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=56521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=56521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}