Strategy, the world’s largest corporate holder of Bitcoin, has officially priced its initial public offering of 28,011,111 shares of Variable Rate Series A Perpetual Stretch Preferred Stock (STRC Stock) at $90 per share. The offering is expected to generate approximately $2.474 billion in net proceeds, with settlement scheduled for July 29, 2025.
Strategy confirmed the capital will be used “for general corporate purposes, including the acquisition of Bitcoin and for working capital.”
This announcement follows Strategy’s earlier disclosure last week regarding the STRC IPO, which initially outlined a 5 million share offering. The company ultimately expanded the offering size in response to strong investor demand.
The STRC Stock offers a variable monthly dividend, beginning at an initial annualized rate of 9.00%, payable in cash and subject to monthly adjustment. While Strategy reserves the right to adjust this rate, reductions are tightly restricted by spread limits based on the one-month term SOFR rate. The company noted its intent is to “maintain STRC Stock’s trading price at or close to its stated amount of $100 per share.”
Compounded dividends will accrue if any regular dividends go unpaid, and Strategy holds redemption rights once the shares are listed on Nasdaq or NYSE. The stock may be redeemed at $101 per share, plus any unpaid dividends. Clean-up and tax-related redemptions are also allowed under specific conditions.
In the event of a “fundamental change,” STRC shareholders may require the company to repurchase their stock at $100 per share plus accumulated dividends.
The liquidation preference starts at $100 per share and will adjust daily to reflect the highest of three values: the stated amount, recent market prices, or the 10-day average.
This goes along with Strategy’s overall capital deployment plan, which centers around expanding Bitcoin reserves. Just last week, the firm disclosed a purchase of 6,220 BTC for ~$740 million, pushing total Bitcoin holdings to 607,770 BTC—currently valued at over $74 billion.
Morgan Stanley, Barclays, Moelis & Company, and TD Securities are acting as joint book-runners. Co-managers include The Benchmark Company, Clear Street, AmeriVet Securities, Bancroft Capital, Keefe, Bruyette & Woods, and Maxim Group LLC.
