## MicroStrategy Announces New STRF Offering Amid Bitcoin Focus
MicroStrategy (formerly known as Strategy) plans to raise $500 million by issuing 5 million shares of its Series A Perpetual Strife Preferred Stock (STRF). This follows a previous attempt to raise $21 billion through its Strike (STRK) preferred stock offering. The company intends to use the capital for corporate operations, including further Bitcoin acquisitions and general expenses. MicroStrategy currently holds 499,226 BTC, valued at over $41 billion, making it the largest public holder of Bitcoin.
## High Dividend Rate and Potential Risks
Each STRF share offers a substantial 10% annual dividend, payable in cash, Class A common stock, or a combination of both. Quarterly dividend payments are expected to begin on June 30, 2025, pending board approval. Unpaid dividends will accrue compounded interest, starting at 10% and increasing by 1% annually, capped at 18%. MicroStrategy retains the right to redeem STRF shares under certain conditions, such as if outstanding shares fall below 25% of the total issuance or due to regulatory/tax events.
## Crypto Community Expresses Concerns
This new offering has raised concerns within the crypto community regarding MicroStrategy’s financial stability. Critics point to the company’s low dollar revenue and heavy reliance on its Bitcoin holdings to fund the 10% dividend.
Simon Dixon compared the situation to the collapse of Long-Term Capital Management, suggesting a potential government bailout or nationalization if MicroStrategy faces financial distress. WhalePanda called the offering “desperate,” highlighting the $50 million annual dividend payout obligation on a $500 million raise as a potential financial burden.
