Bitcoin’s world’s largest corporate holder, Strategy officially priced an initial public offering of 28,011,111 shares of the fluctuating rate Series A Perpetual Stretch Preferred Stock (STRC Stock) at $90 per share. The offer is expected to be settled on July 29, 2025 and is expected to generate approximately $2.474 billion in net revenue.
The strategy confirmed that capital is used “for general corporate purposes, such as the acquisition of Bitcoin or working capital.”
The announcement follows previous disclosures regarding the STRC IPO last week. The company ultimately scaled its offering in response to strong investors’ demand.
STRC shares start at an initial annual rate of 9.00%, are paid in cash, and provide a variable monthly dividend that is subject to monthly adjustments. The strategy reserves the right to adjust this rate, but the decline is severely limited due to expansion restrictions based on the SOFR rate for a period of one month. The company noted that it intends to “trade the STRC shares at or near as much as $100 per share.”
If the regular dividend is unpaid and the strategy lists stocks in NASDAQ or NYSE, a compound dividend will be generated if the strategy holds redemption rights. Shares may be redeemed with unpaid dividends in addition to $101 per share. Cleanup and tax-related redemption are also permitted under certain conditions.
In the event of a “fundamental change” occur, STRC shareholders may require the Company to repurchase the shares with $100 per share of shares and cumulative dividends.
Liquidation preferences start at $100 per share and are adjusted daily to reflect the maximum value of the three values.
This is in addition to Strategy’s overall capital deployment plan, centering on expanding its Bitcoin reserve. Last week, the company disclosed its purchase of 6,220 btc for ~$740 million, pushing its total Bitcoin holdings to 607,770 btc.
Morgan Stanley, Barclays, Moelis & Company, and TD Securities act as co-book runners. Co-managers include Benchmark Company, Clear Street, Amerivet Securities, Bancroft Capital, Keefe, Bruyette & Woods, and Maxim Group LLC.
Source: https://bitcoinmagazine.com/news/michael-saylors-strategy-expands-preferred-equity-sale-to-2-47-billion-to-buy-more-bitcoin
