The Bitcoin (BTC) Treasury strategy has expanded STRC’s coverage twice since it issued Corporate Security on July 22nd.
The company announced on Thursday it will offer up to $4.2 billion in market offerings for its permanent stretch preferred stock (STRC) from its floating rate series A, hybrid company security.
STRC is dividend payment security with no set protection dates and variable yields that can be called or redeemed by the company under certain conditions, according to a announcement Thursday.
The company launched STRC in July, locking each share of corporate security at $100, initially sought capital of $500 million.
The strategy expanded the Rase range to $2 billion two days after launching STRC, selecting investors through initial public offerings (IPOs) and purchasing more than 21,000 BTC with subsequent funds.
The BTC purchases that fueled its debt and equity continue to divide the crypto and investment community. Some analysts have argued that strategy and other BTC Treasury plays are a bubble awaiting bursting and could create a fallout in the crypto market.
Related: Michael Saylor joins the chorus clearly as we work to define cryptography legally
Investor lawsuits against strategy are piled up
Several law firms filed lawsuits against the company on behalf of plaintiffs who alleged that the company misrepresented the volatility risks of Bitcoin and predicted profits.
Cointelegraph spoke with several lawyers. Several lawyers said the claims are divided into those and that it may take years for the case to be resolved.
“The plaintiffs argue that profitability is exaggerated and risk is modest. These are not completely non-existent in disclosure,” lawyer Brandon Ferick told Cointelegraph.
Many of the lawsuits featured similar claims. In other words, the use of alternative financial metrics in strategies is deceptive and can hide obvious financial losses when different accounting methods are used.
“The company has introduced several new Key Performance Indicators (KPIs), meaning BTC yields, BTC gains, and BTC dollar gains — to measure financial results,” one of the class actions lawsuits said.
Strategy co-founder and Bitcoin advocate Michael Saylor opposed criticism of the company’s business model, claiming that the strategy is a misunderstood company.
“We leverage the most innovative technologies and assets in human history. Meanwhile, we are probably the most misunderstood and potentially undervalued stocks in the United States,” he said in the company’s latest revenue call.
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