Strategy plans to offer 5 million shares of the company's Series A Perpetual Strife Preferred Stock and use the proceeds to purchase more Bitcoin.

Business intelligence firm and Bitcoin investor Strategy plans to offer 5 million shares of the company's Series A Perpetual Strife Preferred Stock and use the proceeds to purchase

Business intelligence firm and Bitcoin investor Strategy (NASDAQ:STRAP) announced plans to offer 5 million shares of the company’s Series A Perpetual Strife Preferred Stock and use the proceeds to fund general purposes, which includes its working capital and “acquisition of Bitcoin.”

The firm disclosed in a SEC filing on Monday that the offering is still subject to market and other conditions.

It’s also worth noting that the Series A Preferred Stock will accumulate cumulative dividends at 10% annually and that stockholders would receive dividends on the stock quarterly, starting on June 30, 2025.

Strategy also has the option to buy back all of this stock for cash if the total number of shares left in the market drops below 25% of the issued amount.

The announcement follows the company’s smallest known Bitcoin purchase. On March 17, the company announced that it purchased 130 Bitcoin (BTC) for $10.7 million in cash, at an average price of about $82,981 per BTC.

The most recent BTC buy is the company’s smallest amount since its first Bitcoin investment in August 2020. Before the latest purchase, the least amount of BTC bought by Strategy was a 169-Bitcoin purchase, which was made in August 2024.

Smallest BTC buy amid bull cycle claims

Strategy’s smallest BTC purchase comes amid crypto analysts’ claims that the Bitcoin bull cycle is over.

CryptoQuant founder and CEO Ki Young Ju said on March 18 that the bull cycle is over and that he’s expecting 6 to 12 months of bearish or sideways price action.

The analyst explained that the volume on exchanges is still low despite the recent price drop, which started on March 15. He added that the new bull cycle will begin when the volume on exchanges increases again.

Strategy’s Bitcoin holdings near 500,000

Since its first Bitcoin investment, the company and its subsidiaries have accumulated 499,226 BTC at an aggregate purchase price of $33.1 billion. The coins were bought at an average price of $66,360 per BTC, including fees and expenses.

If the company buys 774 BTC (about $64 million), its total holdings will reach 500,000. This would be 2.38% of the entire Bitcoin supply.

The company is still the largest corporate Bitcoin holder and is still up by over $8 billion on its BTC investments despite the recent market downturn. At the time of writing, Strategy’s BTC holdings are worth about $41.1 billion.