|
Getting your Trinity Audio player ready...
|
Key Takeaways:
- Strategy Inc. targets $500M via STRC IPO to further boost Bitcoin reserves and maintain liquidity.
- STRC offers a 9% annual dividend, flexible but protected by limits, making it an attractive option for income-focused investors.
- The IPO reinforces Strategy’s position as the leading corporate Bitcoin holder, now boasting 607,770 BTC.
Michael Saylor’s Strategy Inc. — formerly MicroStrategy — is once again making headlines in the Bitcoin world. The firm has announced plans to raise $500 million through a public offering of its newly created Variable Rate Series A Perpetual Preferred Stock, dubbed STRC. This strategic fundraising move reinforces the company’s unwavering commitment to acquiring more Bitcoin [BTC].
A Bold New Chapter in Strategy’s Bitcoin Accumulation
According to Strategy’s official press release on July 21, the company plans to offer 5 million STRC shares at $100 each. If successful, this would generate half a billion dollars in fresh capital. Strategy intends to use most of the proceeds for purchasing Bitcoin, while the remainder will go toward working capital.
The offering is being registered under the Securities Act of 1933 and remains subject to market conditions and regulatory approval. However, the clear intent is evident: this IPO is designed to strengthen Strategy’s foothold in the cryptocurrency space.
How STRC Preferred Stock Works
STRC stock introduces a new twist in Strategy’s funding model. This preferred class of shares carries a 9% annual dividend, paid monthly starting August 31, 2025. Although the dividend rate is adjustable, it cannot be reduced arbitrarily — unpaid dividends must be resolved first, and any deferral incurs interest that compounds monthly.
Once listed on the Nasdaq or NYSE, Strategy reserves the right to redeem STRC shares at $101 plus unpaid dividends. In specific scenarios — such as tax law changes or corporate restructuring — shareholders may request a buyback at $100 per share.
The stock carries a $100 liquidation preference, which may increase based on trading behavior, making it attractive to yield-seeking investors with an interest in crypto-related exposure.
Strategy Expands Its Financial Arsenal Amid Bitcoin Volatility
STRC joins a growing list of Strategy’s preferred stock offerings, including STRK, STRF, and STRD, as well as its ongoing at-the-market common stock sales. Recently, the company raised $736.4 million through the sale of 1.6 million MSTR shares.
Also Read: Peter Schiff Tells Investors to Dump Ethereum for Bitcoin Despite ETH’s $3,800 Rally
With the additional capital, Strategy’s total Bitcoin holdings have climbed to 607,770 BTC, acquired at a total cost of $43.61 billion — or an average of $71,756 per coin. Despite Bitcoin slipping 0.77% in the last 24 hours to $118,593.41, Strategy’s MSTR stock edged up 0.72% in after-hours trading to $426.28.
Michael Saylor continues to stoke bullish sentiment, recently tweeting, “Stay Humble. Stack Sats.” — a clear message to investors that his long-term BTC thesis remains unchanged.
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.
