Overview of STRC Preferred Stock IPO
Strategy announced on July 2, 2026 a proposed initial public offering of 5,000,000 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC Stock), registered under the Securities Act of 1933. Proceeds from the IPO will be used for general corporate purposes, including the acquisition of Bitcoin and working capital.
Capital Strategy and Bitcoin Treasury Performance
In a presentation, Strategy positioned the offering as part of its broader capital strategy to expand Bitcoin holdings while maintaining flexibility for dividend adjustments. The company highlighted strong performance since adopting its Bitcoin treasury strategy, showing 104% annualized returns for $MSTR compared to 59% for Bitcoin and 14% for the S&P 500. In Q2 2025 alone, Strategy added $21 billion in digital asset value, increasing its BTC holdings from 528,185 to 597,325.
Key Terms of STRC Stock
- Dividends: Cumulative monthly dividends at an annual rate of 9.00%. Strategy reserves the right to adjust the rate based on one-month term SOFR fluctuations within defined limits, aiming to keep the STRC stock trading near its stated amount of $100 per share. Dividends are paid in cash; unpaid dividends accrue compounded interest monthly.
- Redemption Rights: After listing on Nasdaq or NYSE, the company may redeem all or part of the STRC Stock at $101 per share plus unpaid dividends. Additional triggers include a cleanup redemption if outstanding shares fall below 25% of total issued, or a tax redemption upon certain tax events.
- Repurchase Rights: In case of a fundamental change, shareholders may require Strategy to repurchase STRC Stock at $100 per share plus accumulated dividends. The liquidation preference starts at $100 and adjusts daily based on recent trading data or offering prices.
Underwriters and Recent Bitcoin Acquisition
The offering is led by Morgan Stanley, Barclays, Moelis & Company, and TD Securities as joint book-runners. Co-managers include The Benchmark Company, Clear Street, AmeriVet Securities, Bancroft Capital, and Keefe, Bruyette & Woods.
Separately, Strategy disclosed that between July 14 and July 20, it acquired 6,220 BTC for approximately $740 million, bringing total holdings to 607,770 BTC valued at around $74.1 billion. The STRC IPO will provide additional capital for future Bitcoin purchases.