Michael Saylor’s Strategy Inc. Raises $2.5B With Bitcoin-Linked Preferred Stock Offering

By Pune Media On Jul 25, 2025

TLDR:

Strategy issues 28M Series A Preferred shares at $90 to raise nearly $2.5 billion.
Proceeds will fund bitcoin acquisitions, working capital, and corporate flexibility.
STRC offers a 9% yield with price stabilizers linked to BTC and interest benchmarks.
Redemption rights protect downside, attracting crypto-curious institutional investors.

Strategy Inc. has launched a bold new move, pricing 28 million shares of its Series A Preferred Stock at $90 apiece.

The company expects to pull in around $2.47 billion once the deal closes on July 29. These funds won’t sit idle. Strategy plans to channel the cash into working capital, general operations, and one key area: acquiring more Bitcoin.

The market isn’t treating this as just another raise. This is being seen as a creative structure that links corporate capital to crypto cycles.

Strategy Stock Structure Tied to Yield, Price, and BTC Moves

Strategy’s new Series A Stretch Preferred Stock (STRC) comes with a variable dividend rate, starting at 9% annually.

Unlike standard offerings, the dividend rate isn’t fixed. It adjusts monthly, depending on interest rate benchmarks and internal board discretion. Payouts land at the end of each month, and the company can tweak future rates, but only within tight limits to avoid major slashes.

Importantly, STRC isn’t just about dividends. There’s a mechanism that keeps its trading value tethered close to the $100 stated amount.

Strategy has priced 28.01 million shares of its Variable Rate Series A Perpetual Preferred Stock (STRC) at $90 per share, expecting to raise approximately $2.474 billion in net proceeds upon settlement on July 29. The funds will be used for general corporate purposes.…

— Wu Blockchain (@WuBlockchain) July 25, 2025

Strategy wants the stock to behave like a “synthetic stablecoin” for yield-chasing funds. If prices fall or drift, compounded dividends kick in, adding pressure to the upside. This feature mirrors stable-value mechanics found in some crypto instruments.

Bitcoin at the Core of the Strategy Pitch

In its press release, Strategy confirmed that a portion of the proceeds will go toward expanding its bitcoin holdings.

That alone lit up crypto-focused investors. With BTC still trading in cycles, the link between this preferred stock and crypto sentiment could become stronger. Analysts expect STRC’s price to track BTC more closely than equity shares might.

AlvaApp noted the liquidity boost positions Strategy with more balance sheet flexibility, minus traditional debt risk. The STRC structure also appeals to investors who want Bitcoin exposure without direct volatility.

That middle ground is attracting institutions sitting on the sidelines of spot crypto investing.

Redemption Flexibility and Corporate Leverage

Investors get more than just high-yield potential. Strategy built in redemption rights, both for itself and shareholders. If the stock dips below a threshold, the company can buy it back.

Shareholders can also trigger a repurchase in the event of a “fundamental change.” These clauses reduce downside concerns and allow room for strategic pivots.

Morgan Stanley, Barclays, and Moelis lead the underwriters, with support from several co-managers. The offering is being made under a shelf registration filed with the SEC. The final prospectus will be available ahead of the July 29 settlement date.

For now, crypto and finance circles are watching closely. This structure may set the tone for how companies raise capital while staying aligned with Bitcoin’s future.

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