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Key Takeaways:
- MicroStrategy has expanded its STRC offering to $2.8B, aiming to purchase significantly more Bitcoin.
- Major banks like Morgan Stanley and Barclays are backing the deal, showing institutional confidence in the BTC-centric strategy.
- Debt concerns remain, but MicroStrategy continues to double down on Bitcoin as its primary corporate asset.
MicroStrategy has quadrupled its latest preferred perpetual stock offering, Stretch (STRC), from $500 million to a massive $2.8 billion. The proceeds from the offering will be used to fund further Bitcoin (BTC) acquisitions, reinforcing the company’s aggressive crypto treasury strategy.
The move marks yet another bold capital raise in MicroStrategy’s ongoing bet on Bitcoin as a long-term store of value and a hedge against fiat debasement.
Big Banks Show Confidence in BTC Strategy
According to a Bloomberg report, major financial institutions including Morgan Stanley and Barclays have already shown strong interest in the expanded STRC offering. Their involvement signals increasing institutional support for MicroStrategy’s unorthodox treasury management strategy, which combines stock issuance and convertible debt to fuel ongoing BTC purchases.
The STRC joins other creative funding vehicles like Stride (STRD), Stark (STRK), and Strife (STRF)—all part of what MicroStrategy founder Michael Saylor calls the company’s “Bitcoin defense department.”
The Bitcoin Defense Department pic.twitter.com/fT9l35Vhuh
— Michael Saylor (@saylor) July 23, 2025
MicroStrategy’s Bitcoin Holdings Near $70B
MicroStrategy remains the undisputed leader in corporate Bitcoin holdings, with a stash of 607,770 BTC—valued at over $70 billion at current market prices. Since initiating BTC accumulation in 2020, the firm has utilized equity offerings and bond issuances to steadily grow its Bitcoin position.
Despite a recent 12% drop in MSTR stock from its peak of $457 to $405 amid Bitcoin’s decline to $115,000, the stock is still up 72% from April lows, signaling continued investor confidence.
Rising Debt Raises Questions on Risk Management
As of March 2025, MicroStrategy had accumulated $8 billion in total debt, with $3.65 billion maturing by mid-2028. Critics warn that excessive leveraging—especially for a volatile asset like Bitcoin—could create vulnerabilities for both the company and broader financial markets.
Jake Chervinsky, legal head at Variant Fund, stressed the need for risk mitigation:
Treasury companies taking on debt to get leverage on crypto better be prepared for downside volatility.
— Jake Chervinsky (@jchervinsky) July 24, 2025
The last thing crypto needs is a bunch of bad risk managers blowing up and getting liquidated in the traditional equity markets.
Can we please skip that part of the cycle?
“The last thing crypto needs is a bunch of bad risk managers blowing up and getting liquidated in the traditional equity markets.”
Also Read: Crypto Crash Wipes Out $600M in Longs as 213K Traders Liquidated — Bitcoin Falls Below $116K
However, Alex Thorn of Galaxy Research dismissed these concerns as premature, noting that serious risk exposure won’t surface until 2028.
Despite market volatility, analysts remain bullish on MicroStrategy’s latest move. Jeff Walton, an MSTR analyst, projected that the upsized STRC proceeds could be used to buy up to 25,000 BTC within the next 10 days, potentially impacting BTC price dynamics in the short term.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
