Key Notes
- Strategy issuing $979.7 million worth of high-yield 10% preferred stock (STRD) to fund more Bitcoin purchases.
- On-chain data shows historic miner-to-exchange BTC inflows topping $1B daily.
- Despite BTC accumulation, the buy-side remains hesitant, resulting in market absorption without a breakout.
Strategy, the largest corporate holder of Bitcoin
BTC
$105 028
24h volatility:
0.5%
Market cap:
$2.09 T
Vol. 24h:
$44.71 B
, is doubling down with a bold move announcing a nearly $1 billion preferred stock offering, designed not only to attract yield-hungry investors but also to fund a fresh round of BTC purchases.
The STRD Gamble
Dubbed the “Series A Perpetual Stride Preferred Stock (STRD)”, the new issue offers a generous 10% annual yield with no management fees, Strategy’s most aggressive capital product to date.
According to a press statement, the company will issue 11.76 million STRD shares, aiming to raise $979.7 million post-expenses. Previously, the company wanted to raise $250 million with STRD shares. However, it seems that Strategy’s BTC hunger is ever-growing.
The offering sits beneath Strategy’s other preferred share classes (STRF and STRK) in the capital stack, which makes it riskier, but more rewarding for those willing to take the plunge.
Unlike its STRK counterpart, an 8% convertible instrument, STRD is non-convertible and features a non-cumulative dividend, meaning investors forgo back payments if dividends are skipped.
Plus, STRD shares are non-callable under normal conditions, locking in the 10% yield unless triggered by significant structural or tax-related changes.
The capital raised is earmarked for general corporate purposes, with a key focus on bolstering Strategy’s Bitcoin reserves.
Bulls and Bear Fight for Dominance
Strategy’s nearly billion-dollar move is unfolding at a moment of heightened market tension. Recent data from CryptoQuant highlights an increase in miner-to-exchange flows, reaching over $1 billion per day between May 19 and May 28.
Such inflows are historically associated with sell-offs, as miners offload Bitcoin in large volumes, usually ahead of or during price corrections.
Adding to the complexity, data from Glassnode indicates a subtle but important shift: Bitcoin accumulation is making a comeback.
Wallet cohorts, especially those holding between 10 and 100 BTC, are showing the highest accumulation score possible (1.0), indicating renewed confidence. Even smaller wallets (
However, this accumulation hasn’t yet translated into price action. Glassnode said that while distribution has slowed, the demand side lacks urgency. Buyers are waiting, reluctant to chase prices, creating a delicate equilibrium.
What results is a market caught in rotation: older coins are being sold, newer participants are accumulating, but no decisive trend has emerged. The bullish impulse is counteracted by miner sell pressure and profit-taking by long-term holders.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
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