Strategy Launches Preferred Stock Offering to Fund Bitcoin Buying Spree, Raising Up to $500M

Strategy has launched a new preferred stock offering to raise up to $500 million and fuel its Bitcoin buying spree. The funds will be used to expand its Bitcoin treasury and support general corporate purposes. The offering consists of 5 million variable-rate preferred shares priced at $100 each. Strategy retains the right to redeem the shares at $101 per share plus accrued dividends. The new issuance reflects Strategy's ongoing commitment to Bitcoin as a core treasury reserve asset.

MicroStrategy Incorporated, known as Strategy, has launched a new preferred stock offering to raise up to $500 million [1]. The funds will be used to expand its Bitcoin treasury and support general corporate purposes. The offering consists of 5 million variable-rate preferred shares priced at $100 each. Strategy retains the right to redeem the shares at $101 per share plus accrued dividends. The new issuance reflects Strategy's ongoing commitment to Bitcoin as a core treasury reserve asset.

The STRC Stock will accumulate cumulative dividends at a variable rate per annum on the stated amount of $100 per share. Regular dividends will be payable monthly in arrears, beginning on August 31, 2025. The initial monthly regular dividend rate per annum is 9.00%, but Strategy has the right to adjust this rate subject to certain restrictions [1].

The company's current intention is to adjust the monthly regular dividend rate per annum to cause the STRC Stock to trade at prices at or close to its stated amount of $100 per share. Declared regular dividends on the STRC Stock will be payable solely in cash. If any accumulated regular dividend is not paid on the applicable regular dividend payment date, additional regular dividends will accumulate and compound monthly [1].

Strategy will have the right to redeem all or any whole number of shares of the outstanding STRC Stock at a cash redemption price per share of $101 plus accumulated and unpaid regular dividends. However, Strategy may not redeem less than all of the outstanding STRC Stock unless at least $250 million aggregate stated amount of STRC Stock is outstanding and not called for redemption as of the time Strategy provides the related redemption notice [1].

The IPO is being led by Morgan Stanley, Barclays, Moelis & Company, and TD Securities, with the Benchmark Company, Clear Street, AmeriVet Securities, Bancroft Capital, and Keefe, Bruyette & Woods acting as co-managers. The offering is being made pursuant to an effective shelf registration statement on file with the Securities and Exchange Commission (SEC) [1].

References:
[1] https://www.strategy.com/press/strc-ipo-launch_07-21-2025