Want to Earn 10%? Strategy’s New Stock Is All About Bitcoin

Introduction:

A company called Strategy—which used to be named MicroStrategy—is making headlines again. This time, it’s planning to raise $250 million by selling a special type of stock called preferred shares. Why? To buy even more Bitcoin and keep the company running smoothly.

Led by Bitcoin supporter Michael Saylor, Strategy already owns more Bitcoin than any other public company. Now, they want to expand that even further. But how exactly are they doing it, and what does it mean for investors?

If you’re curious about investing in Strategy, Bitcoin, or even just stocks in general, you can get started today with a free account on Robinhood.

Let’s break everything down in simple terms so you can understand what’s going on—and whether you should care.

Summary

1. What Is Strategy Doing Right Now?
2. Why Is Strategy Doing This
3. Strategy Has Done This Before
4. Strategy’s Long-Term Bitcoin Plan
5. What Are the Risks?
6. Why Might Someone Buy These Shares?
7. How to Start Investing in Stocks or Bitcoin

1. What Is Strategy Doing Right Now?

Strategy is trying to raise $250 million by selling a new kind of stock called 10% Series A Perpetual Stride Preferred Stock (ticker symbol: STRD).

Let’s look at the details:

• They’re offering 2.5 million preferred shares.
• Each share costs $100.
• These shares pay a 10% dividend every year (that’s $10 per year per share)—but only if the company decides to pay it.

These stocks will be available to buy and sell on the Nasdaq exchange.

2. Why Is Strategy Doing This?

The main reasons are:

1. To buy more Bitcoin
   

2. To fund business operations (paying employees, running the company, etc.)

Just last week, Strategy bought 705 more Bitcoins for $75 million, bringing their total stash to a whopping 580,955 BTC. No other public company comes close to owning that much.

Strategy is on a mission to become something like a Bitcoin treasury—a place that stores massive amounts of Bitcoin and treats it like a long-term investment.

This is a common myth: “I need a lot of money to start investing.”

Wrong!

In today’s digital age, platforms like SoFi allow you to invest with just $5 or $500.

These platforms offer:

• Fractional shares (buy part of a stock)
• No account minimums
• Zero commissions
• Free educational tools

Even small, regular investments (like $10 per week) can grow into something big over time.

3. Strategy Has Done This Before

This isn’t the first time Strategy has sold preferred shares. In fact, it’s the third time just in 2025!

Earlier this year, they released:

• STRK (Strike Preferred Stock)
  

• STRF (Strife Preferred Stock)
  

Those earlier offerings were originally planned to raise $500 million, but because so many investors wanted in, Strategy increased the total to $723 million. That’s a sign there’s strong demand for these high-dividend, Bitcoin-connected stocks.

4. Strategy’s Long-Term Bitcoin Plan

Michael Saylor and Strategy are fully committed to Bitcoin. Here are some facts about their strategy:

• They have no limit on how much Bitcoin they want to buy.

• They’re planning to hold Bitcoin for the long term, not sell it any time soon.

• They will raise more money if needed to keep buying Bitcoin—through offerings like these.

In short, Strategy is turning itself into something like a Bitcoin investment vehicle. It’s not just a software company anymore—it’s a company whose value is closely tied to Bitcoin.

5. What Are the Risks?

While the plan sounds bold and exciting, there are real risks involved:

A. Bitcoin Price Drops

If the price of Bitcoin drops a lot, it can seriously hurt Strategy’s balance sheet. Since most of their value is tied to Bitcoin, a big drop would reduce their overall worth—and possibly scare investors away.

B. Tax Issues

Even if Strategy doesn’t sell any of its Bitcoin, they could still face taxes on unrealized gains. That means if their Bitcoin holdings go up in value, they might still owe money to the government, even without selling a single coin.

C. Dividend Isn’t Guaranteed

The 10% dividend might sound great, but it’s not guaranteed. If Strategy runs into trouble or decides to save money, they can skip payments. And you won’t get that money back later.

6. Why Might Someone Buy These Shares?

So, why would anyone want to buy STRD shares?

Here are a few reasons:

• High dividend: 10% is much higher than most regular stocks.
• Bitcoin exposure: If you believe in Bitcoin but don’t want to buy crypto directly, STRD gives you indirect exposure.
• Traded on Nasdaq: Easy to buy/sell like any regular stock.

But remember, these benefits come with risk—especially if Bitcoin’s price goes down or if Strategy stops paying dividends.

7. How to Start Investing in Stocks or Bitcoin

If all of this sounds interesting and you want to start investing—whether in Bitcoin, preferred shares, or regular stocks—one of the easiest ways is through Robinhood, a popular investing app for beginners.

👉 Click here to sign up for Robinhood and get started

You can start with as little as $1, and the platform is very user-friendly. They offer access to stocks, ETFs, crypto, and more.

Frequently Asked Questions

Q.1. What is strategy?
A.1. Strategy is a tech company formerly called MicroStrategy. It’s now best known for investing heavily in Bitcoin under the leadership of Michael Saylor.

Q.2. What are preferred shares?
A.2. Preferred shares are a type of stock that pays fixed dividends and has priority over regular shares when it comes to payments—but they usually don’t come with voting rights.

Q.3. What is the 10% Series A Perpetual Stride Preferred Stock (STRD)?
A.3. It’s a new preferred stock issued by Strategy. It costs $100 per share and offers a 10% annual dividend—if paid.

Q.4. Is the 10% dividend guaranteed?
A.4. No, it’s not. If Strategy chooses not to pay the dividend in a certain year, investors lose out and won’t get that money later.

Q.5. What happens if Bitcoin’s price crashes?
A.5. Since Strategy holds a lot of Bitcoin, a crash in price could hurt the company’s value, possibly affect its ability to pay dividends, and make the preferred shares less attractive.

Conclusion

Strategy’s plan to raise $250 million by selling preferred shares is a bold and unusual move in the world of corporate finance. Instead of using the money for traditional business growth, they’re using it to buy more Bitcoin.

For investors, this is a unique opportunity. The 10% dividend looks attractive, and being part of a company that’s all-in on Bitcoin might appeal to crypto fans. But it’s not without risk—especially if Bitcoin becomes more volatile or the company skips dividend payments.

If you're considering investing, it’s essential to do your research, understand the risks, and never put in more money than you can afford to lose. Want to start small? Sign up with Robinhood and explore investing safely

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