Strategy (Nasdaq: MSTR), the software intelligence firm rebranded from MicroStrategy, is doubling down on its bitcoin-centric treasury strategy. On July 25, the company announced the pricing of 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, finalized on July 24, is expected to close on July 29, subject to customary closing conditions.
Key Terms of the STRC Offering
Strategy estimates net proceeds of approximately $2.474 billion after underwriting discounts, commissions, and estimated expenses. The company stated: “Strategy intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin and for working capital.” The STRC Stock carries a stated amount of $100 and offers an initial annual dividend of 9.00%, payable monthly starting Aug. 31. Strategy can adjust the dividend rate monthly, subject to limits tied to market benchmarks. Missed dividends accrue and compound until fully paid. Investors benefit from redemption options: Strategy can buy back shares after listing at a minimum of $101 plus accrued dividends. Additional protections apply in the event of tax changes or significant corporate events. The stock’s liquidation preference adjusts based on recent trading activity to protect shareholder value.
Bitcoin Holdings Surpass 600,000 BTC
As of July 20, Strategy further expanded its bitcoin stash by acquiring an additional 6,220 BTC for approximately $739.8 million—an average price of $118,940 per coin. With this latest purchase, the company now holds a total of 607,770 BTC, acquired for roughly $43.61 billion at an average cost of $71,756 per bitcoin. This makes Strategy the largest publicly traded corporate holder of bitcoin, surpassing even some sovereign nations. The firm’s relentless accumulation, beginning in 2020, has transformed its balance sheet into a leveraged proxy for bitcoin exposure.
Interestingly, the most recent purchase at an average price of $118,940 per coin is significantly above the overall average cost, indicating that Strategy sees value even at current elevated levels. While some analysts praise the strategy as a bold bet on digital gold, critics point to the risks of high leverage and concentrated exposure. Founder and Chairman Michael Saylor has consistently argued that bitcoin is “digital gold” and that the company is willing to tolerate volatility for long-term wealth preservation.
Market Implications
The announcement provided a modest boost to bitcoin prices, reinforcing the narrative of institutional buying. As central banks globally pivot toward looser monetary policy, Strategy’s approach may inspire other corporate treasuries to follow suit. However, the sustainability of this model remains a key risk: a sharp drop in bitcoin prices could strain Strategy’s balance sheet and impact its ability to service dividend payments. For now, Strategy’s “bitcoin accumulation machine” continues to run at full speed.
With the STRC Stock set to trade on Nasdaq, investors now have a direct way to participate in the company’s bitcoin-first strategy. Market participants will monitor whether Strategy expands the offering further and whether its total bitcoin holdings reach the 1 million milestone.