Business Insights
  • Home
  • Crypto
  • Finance Expert
  • Business
  • Invest News
  • Investing
  • Trading
  • Forex
  • Videos
  • Economy
  • Tech
  • Contact

Archives

  • August 2025
  • July 2025
  • June 2025
  • May 2025
  • April 2025
  • March 2025
  • February 2025
  • January 2025
  • December 2024
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • July 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • August 2023
  • January 2023
  • December 2021
  • July 2021
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019

Categories

  • Business
  • Crypto
  • Economy
  • Finance Expert
  • Forex
  • Invest News
  • Investing
  • Tech
  • Trading
  • Uncategorized
  • Videos
Subscribe
Money Visa
Money Visa
  • Home
  • Crypto
  • Finance Expert
  • Business
  • Invest News
  • Investing
  • Trading
  • Forex
  • Videos
  • Economy
  • Tech
  • Contact
Strategy Expands STRC Offering Twice in One Week
  • Forex

Strategy Expands STRC Offering Twice in One Week

  • August 1, 2025
  • Roubens Andy King
Total
0
Shares
0
0
0
Total
0
Shares
Share 0
Tweet 0
Pin it 0

Bitcoin (BTC) treasury company Strategy has expanded the scope its STRC offering twice since issuing the corporate security on July 22.

The company announced an at-the-market offering of up to $4.2 billion of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), a hybrid corporate security, to purchase more BTC on Thursday.

STRC is a dividend-paying security with variable yields that has no set maturity date and can be called or redeemed by the company under specific conditions, making the terms of repayment flexible, according to Thursday’s announcement. 

The company launched STRC in July, pegging each share of the corporate security to $100, and was initially seeking a $500 million capital raise.

Strategy company financial metrics. Source: Strategy

Strategy expanded the scope of the raise to $2 billion two days after launching STRC to select investors through an initial public offering (IPO), and purchased over 21,000 BTC with the ensuing funds.

Its debt and equity-fueled BTC buying continues to divide the crypto and investment community. Some analysts have argued that Strategy and other BTC treasury plays are bubbles waiting to burst, which could create fallout in the crypto markets.

Related: Michael Saylor joins chorus for clarity as US works to legally define crypto

Investor lawsuits against Strategy pile up

Multiple law firms have filed litigation against the company on behalf of plaintiffs who allege that the company misrepresented Bitcoin’s volatility risks and projected profits. 

Cointelegraph spoke with multiple attorneys, who were divided on the substance of the claims and said the lawsuits may take years to resolve.

“Plaintiffs are alleging that profitability was overstated and that risks were understated, not that these things were entirely absent from disclosures,” attorney Brandon Ferrick told Cointelegraph.

MicroStrategy, Michael Saylor, Companies
One of the lawsuits against Strategy takes aim at the company’s use of alternative financial metrics. Source: PACER

Many of the lawsuits featured similar claims, namely that Strategy’s use of alternative financial metrics was deceptive, allowing the company to disguise financial losses that would be apparent if different accounting methods were used.

“The company introduced several new key performance indicators (KPIs) — namely, BTC Yield, BTC Gain, and BTC dollar Gain — to measure its financial results,” one of the class action lawsuits said.

MicroStrategy, Michael Saylor, Companies
The alternative BTC-focused metrics the company also focuses on. Source: Strategy

Strategy co-founder and Bitcoin advocate Michael Saylor pushed back against criticisms of the company’s business model, arguing that Strategy is a misunderstood enterprise.

”We’re capitalized on the most innovative technology and asset in the history of mankind; on the other hand, we’re possibly the most misunderstood and undervalued stock in the US and potentially the world,” Saylor said during the company’s most recent earnings call.

Magazine: Pakistan will deploy Bitcoin reserve in DeFi for yield, says Bilal Bin Saqib