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Finance

Beyond Bitcoin: How Strategy Inc. Leveraged $128M Capital Raise for Dividends, Not Crypto

Strategy Inc. raised $128M, bought 196 BTC, and will pay dividends. Holdings reached 640,031 BTC.

byAndres Castro

September 29, 2025, 12:40 PM

Executive Summary

Strategy Inc. (MSTR) raised $128.1 million through ATM programs but allocated only $22.1 million to acquire 196 Bitcoin, with the majority of proceeds likely earmarked for preferred stock dividends.

Following this purchase, Strategy’s aggregate Bitcoin holdings reached 640,031 BTC as of September 28.

The company maintains significant flexibility for future capital raises with $46.4 billion in ATM shelf capacity, balancing Bitcoin accumulation with financial commitments like dividend payments.

The Story So Far

Strategy Inc. (MSTR) employs a core strategy of accumulating Bitcoin, often funding these acquisitions through capital market raises, but also balances this with significant financial obligations like preferred stock dividends, which explains why a recent substantial capital raise prioritized dividend payments over aggressive Bitcoin purchases in that specific period.

Why This Matters

MicroStrategy’s recent capital raise, largely allocated to preferred stock dividends rather than aggressive Bitcoin acquisition, signals a potentially more balanced approach to its capital allocation strategy, prioritizing shareholder returns alongside its core digital asset accumulation. This demonstrates the company’s ability to tap capital markets while managing financial obligations, though its substantial remaining ATM capacity still provides flexibility for future, larger Bitcoin investments.

Who Thinks What?

Strategy Inc. views its recent capital raise as a means to balance ongoing Bitcoin accumulation with managing financial obligations, such as preferred stock dividends.

The market appears to view Strategy Inc.’s financial strategy positively, as evidenced by the 3.9% increase in MSTR stock following the capital raise and Bitcoin acquisition details.

Strategy Inc. (MSTR) raised a substantial $128.1 million through its at-the-market (ATM) programs between September 22 and 28, 2025, but only allocated $22.1 million of these proceeds to acquire 196 Bitcoin (BTC). The company’s latest Form 8-K indicates that the bulk of the funds are likely earmarked for preferred stock dividends scheduled for payment on September 30. Following this purchase, Strategy’s aggregate Bitcoin holdings reached 640,031 BTC as of September 28.

Capital Raise Details

The $128.1 million in net proceeds was generated from the sale of various securities. This included 101,713 shares of its 10.00% Series A perpetual “STRF” preferred stock, yielding $11.3 million. Additionally, 5,000 shares of its 10.00% Series A perpetual “STRD” preferred stock brought in $0.4 million, and 347,352 shares of common stock (MSTR) contributed $116.4 million.

Bitcoin Acquisition

Despite the significant capital raise, Strategy’s Bitcoin acquisition during this period was comparatively small. The 196 BTC were purchased at an aggregate cost of $22.1 million, equating to an average price of $113,048 per Bitcoin. This transaction represents a modest addition to the company’s substantial digital asset reserves.

Financial Strategy and Outlook

The primary reason for the limited Bitcoin deployment appears to be the company’s financial commitments, specifically the upcoming preferred stock dividends. Strategy maintains considerable flexibility for future capital raises, with an ample ATM shelf capacity totaling $46.4 billion across its preferred and common programs. At the time of publication, MSTR stock was up 3.9% from its previous day’s close.

Key Takeaways

Strategy continues its strategy of leveraging capital markets, demonstrating a balance between ongoing Bitcoin accumulation and managing its financial obligations. The recent capital raise underscores the company’s ability to access funds, even as it prioritizes dividend payments over aggressive Bitcoin purchases in this specific period.