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  • 2 minutes read

Strategy Raises STRC Offering to $2 Billion to Buy More Bitcoin

Story Highlights
  • Strategy increases STRC preferred stock offering to $2 billion, up from the initial $500 million plan.

  • STRC shares to be priced at $90, below the expected $100, with a 9% starting annual dividend.

  • Strategy adds 6,220 BTC in July, bringing total holdings to 607,770 BTC, over 3% of all Bitcoin.

Strategy has significantly raised the size of its STRC preferred stock offering. The move signals an even bolder push in its ongoing Bitcoin strategy.

It had earlier announced plans to launch an IPO for 5 million shares of its new STRC preferred stock, aiming to raise funds to buy more Bitcoin and support corporate operations. In a latest update, the company has now quadrupled the preferred stock offering to $2 billion, according to Bloomberg.

Strategy Prices STRC At $90

The stock pays a 9% starting annual dividend, adjusts monthly, and compounds if unpaid. Strategy is now expected to price its STRC shares at $90, below the original $100 target. Strategy can redeem shares under certain conditions anytime after listing, and investors can sell back in case of major company changes. 

The Stretch STRC preferred stock ranks above earlier classes like STRK and STRD, but below Strife securities and convertible bonds. Major firms like Morgan Stanley, Barclays, and Moelis are managing the offering.

The STRC offering underscores Strategy’s ongoing commitment to holding BTC as a core treasury asset.

Strategy and its board are also facing a class-action lawsuit, filed on July 21 in Delaware. The suit claims that the company illegally changed the terms of its earlier STRK preferred stock, including the liquidation preference, without a shareholder vote. The case is still in early stages and Strategy says it’s too soon to know the financial impact.

Strategy Sees $11B in Bitcoin Gains.

Strategy’s most recent Bitcoin buy was made between July 14-20, where it acquired 6,220 BTC. It now holds 607,770 Bitcoins, which is over 3% of all the Bitcoin in existence. preferred stock sales and plan to keep going, aiming for 1 million BTC.

Michael Saylor, Chairman of Strategy recently shared that MSTR has gained 93,191 BTC so far this, worth $11.1 billion. In just the first 3 weeks of July, they added another 5,668 BTC ,with $676 million.

Although the hype around Bitcoin has helped boost Strategy’s stock, some experts warn that it’s a risky game. Its heavy reliance on leverage makes it more exposed to sharp market drops. And if Bitcoin drops significantly, its impact on Strategy’s financial position and stock could be severe.

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FAQs

Why did Strategy increase its STRC stock offering?

Strategy raised the STRC offering to $2B to buy more Bitcoin and support corporate operations.

How much Bitcoin does Strategy currently hold?

Strategy holds 607,770 BTC—over 3% of all Bitcoin in existence—as part of its treasury strategy.

What are the risks of Strategy’s Bitcoin strategy?

Experts warn Strategy’s leverage-heavy BTC plan may lead to large losses if Bitcoin prices fall.

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