Strategy To Launch STRC Stock IPO To Bolster Bitcoin Treasury

Strategy revealed plans to launch an initial public offering of 5 million shares of its Variable Rate Series A Perpetual Stretch Preferred Stock, known as STRC Stock. The shares are being registered under the Securities Act of 1933.

Strategy is offering $STRC (“Stretch”), a new Perpetual Preferred Stock via IPO, to select investors. $MSTR pic.twitter.com/LaQSrrMsEg
— Michael Saylor (@saylor) July 21, 2025

Proceeds from the sale will be used “for general corporate purposes, including the acquisition of Bitcoin and for working capital,” according to the company.

During a presentation, Strategy framed the STRC offering as a key part of its broader plan to expand Bitcoin reserves while preserving flexibility in dividend policy.

The company emphasized its outperformance since adopting a Bitcoin-focused strategy, citing a 104% annualized return for $MSTR, compared to 59% for Bitcoin and 14% for the S&P 500.

In Q2 2025 alone, Strategy reported a $21 billion increase in digital asset value, raising its Bitcoin holdings from 528,185 to 597,325.

STRC shares will carry a 9.00% initial annual dividend, paid monthly. This dividend rate is adjustable and linked to fluctuations in the one-month SOFR.

Strategy said it aims to keep STRC trading near its $100 par value, with dividends paid in cash and any unpaid amounts compounding monthly.

The company holds redemption rights once the stock is listed on Nasdaq or NYSE, allowing it to buy back shares at $101 plus any unpaid dividends.

Other redemption scenarios include a reduction in outstanding shares below 25% or the occurrence of certain tax events.

Investors will also have repurchase rights at $100 plus accrued dividends in the event of a “fundamental change.”

The liquidation preference starts at $100 and will fluctuate daily based on market pricing.

Morgan Stanley, Barclays, Moelis & Company, and TD Securities will serve as joint bookrunners for the offering.

Co-managers include The Benchmark Company, Clear Street, AmeriVet Securities, Bancroft Capital, and Keefe, Bruyette & Woods.

The IPO news comes on the heels of Strategy’s disclosure that it acquired 6,220 Bitcoin for $740 million between July 14th and July 20th, boosting its total holdings to 607,770 Bitcoin, worth approximately $74.1 billion.