Strategy, formerly known as MicroStrategy, revealed that it secured over $700 million from a recent preferred stock offering designed to purchase more Bitcoin.

On March 21, the firm confirmed the sale of 8.5 million shares of its Series A Perpetual STRF Preferred Stock. Each share was priced at $85 and offered a 10% annual dividend.

Strategy’s STRF aimed initially to raise $500 million, but it surpassed the target by over 40% by raising $711 million.

This latest issue does not allow conversion into common shares, unlike the company’s previous STRK offering, which came with an 8% yield and conversion rights.

Jeff Park, head of alpha strategies at Bitwise, pointed out that investor appetite for STRF was driven by fixed income rather than exposure to Strategy’s volatile stock.

He noted that the higher yield and improved pricing terms contributed to the stronger response, which contributed to STRF raising more funds than STRK.

Strategy holds over 499,000 BTC—worth over $40 billion—and has built its corporate identity around aggressive Bitcoin accumulation. However, its decision to avoid selling holdings has left the company with limited liquidity.

Bitwise pointed out that this situation has led to a drop in liquidity ratios. Its cash ratio has fallen from 2.10 in 2019 to just 0.11 in 2024.

However, Bitwise maintains that bankruptcy risk remains low. Even under a severe scenario—Bitcoin dropping to $30,000 by September 2027—the company would only need to liquidate about 7.3% of its Bitcoin to meet a $1.1 billion bond obligation.

Nevertheless, Bitwise has suggested new strategies to strengthen the firm’s cash flow. One recommendation involves lending half of its Bitcoin at a 4% annual return, which could generate enough income to cover interest payments and dividends.