Our Terms & Conditions | Our Privacy Policy
Michael Saylor’s Strategy is exploring new vehicles to fund its Bitcoin purchase, with the latest play being an initial public offering (IPO). A press release reveals that a Strategy STRC IPO is looming in the distance, but market conditions will decide its eventual rollout.
Strategy STRC IPO To Offer 5 Million Shares
According to a press release, Strategy (formerly Microstrategy) has announced an imminent IPO to raise funds for its Bitcoin purchase. The company is offering 5 million shares of Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) to investors.
At $100 per share, Strategy is eyeing a $500 million capital raise from the STRC IPO. The company says it will use the funds to power its Bitcoin purchases and earmark a portion for working capital.
“Strategy intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin and for working capital,” read the statement.
The announcement to launch a STRC IPO follows Strategy’s Bitcoin purchase early in the day that sent its holdings to 607,770 BTC. Per the statement, the Strategy STRC IPO will depend on market conditions for launch, with the company extending its range of preferred stock offerings.
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
New Preferred Stock To Offer Indirect Bitcoin Exposure
Dubbed Stretch, the new Perpetual Preferred Stock will pay monthly dividends at a variable rate. However, the initial monthly dividend rate each year is pegged at 9.00% with Strategy having the right to adjust the monthly regular dividend rate.
Despite its absolute discretion, there are certain restrictions to Strategy’s right to reduce the monthly dividend. Strategy is limited to cutting the monthly dividend rate by more than 25 basis points plus any rise in interest rate volatility measured by secured overnight financing rate.
Furthermore, Strategy has the right to redeem shares of outstanding STRC stock at any time after listing on a global stock exchange. Strategy’s STRD listed on Nasdaq about ten days after its announcement by Michael Saylor.
The redemption price is $101 per share in addition to any unpaid dividends till the redemption date. Meanwhile, the liquidation preference of the STRC stock will begin at $100 per share.
The Strategy STRC IPO is leaning on Morgan Stanley, TD Securities, and Barclays as joint book-running managers. Amid the announcement, MSTR stock is up nearly 1% to trade at $426.28. Strategy is sitting on an unrealized $14 billion Bitcoin gain as it leads the pack for corporate adoption of the largest cryptocurrency.
✓ Share:
Aliyu Pokima
Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.
Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.
Aggregated From –
Comments are closed.