Strategy Increases Preferred Stock Offering to $2.47 Billion To Support Bitcoin Acquisition Strategy

Strategy has finalized pricing for its initial public offering of 28,011,111 shares of Variable Rate Series A Perpetual Stretch Preferred Stock (STRC Stock) at $90 per share. 

The offering is expected to generate approximately $2.474 billion in net proceeds, with settlement scheduled for July 29th, 2025.

The company indicated that the capital will be allocated “for general corporate purposes, including the acquisition of Bitcoin and for working capital.”

Originally disclosed as a 5 million share offering, the planned size was increased following robust investor demand.

The STRC Stock features a variable dividend paid monthly, beginning at an initial annualized rate of 9.00%. 

While Strategy retains the option to adjust this rate, any reductions are subject to constraints linked to the one-month SOFR rate. 

The company stated its objective is to “maintain STRC Stock’s trading price at or close to its stated amount of $100 per share.”

If regular dividends are not paid, they will accrue on a compounded basis. After the stock is listed on Nasdaq or the NYSE, Strategy will have the right to redeem it at $101 per share, plus any accrued but unpaid dividends. 

Additional redemption rights exist in tax-related or clean-up scenarios.

Moreover, in the event of a “fundamental change,” STRC shareholders may require the company to repurchase their stock at $100 per share plus any accumulated dividends. 

The liquidation preference is determined to be the highest value among the stated amount, the current market price, or the 10-day average, with adjustments made daily.

This capital raise is part of Strategy’s broader plan to expand its Bitcoin holdings. Recently, the company announced a purchase of 6,220 Bitcoin for approximately $740 million, raising its total Bitcoin holdings to 607,770 Bitcoin, valued at over $74 billion at current market prices.

The offering is being led by Morgan Stanley, Barclays, Moelis & Company, and TD Securities. Co-managers include The Benchmark Company, Clear Street, AmeriVet Securities, Bancroft Capital, Keefe, Bruyette & Woods, and Maxim Group LLC.