Strategy's STRC Preferred Stock Raises $2.5 Billion, Offers High-Yield Dividends Backed by Bitcoin

Strategy, formerly MicroStrategy, has launched its Perpetual Stretch Preferred Stock (STRC), raising $2.5 billion and offering a $4.2 billion ATM program. STRC is a variable-rate, perpetual preferred stock with a 9% annualized dividend, backed by bitcoin and designed to appeal to yield-seeking investors. It is senior to other preferred stocks and junior to debt and common equity. The security can be redeemed at the issuer's option and includes a fundamental change put right.

Strategy, formerly known as MicroStrategy, has launched its Perpetual Stretch Preferred Stock (STRC), raising $2.5 billion and offering a $4.2 billion at-the-market (ATM) program. This new financial instrument, designed to appeal to yield-seeking investors, is a variable-rate, perpetual preferred stock with a 9% annualized dividend backed by bitcoin [2].

The STRC shares are senior to other preferred stocks like STRD, STRK, and the firm’s common equity but junior to debt. Each share is overcollateralized with bitcoin at a ratio of roughly 5-to-1, meaning for every dollar of STRC issued, Strategy holds approximately five dollars’ worth of BTC. The security can be redeemed at the issuer's option once listed on Nasdaq and includes a fundamental change put right at liquidation value plus any accrued dividends [2].

Strategy's IPO of STRC raised approximately $2.5 billion through the issuance of 28 million shares priced at $90 each. The offering was announced on July 21 and closed on July 29. Proceeds will be used for general corporate purposes, including further bitcoin purchases and working capital [2].

The company has also entered into a sales agreement allowing it to issue up to $4.2 billion worth of STRC shares through an ATM offering. This program allows Strategy to tap liquidity gradually, adjusting issuance based on market conditions and pricing [4]. The firm expects to make sales of STRC Stock pursuant to the ATM Program in a disciplined manner over an extended period, taking into account the trading price and trading volumes of the STRC Stock at the time of sale [4].

Executive Chairman Michael Saylor described STRC as a clean, scalable instrument that solves the constraints of previous capital tools like convertible bonds and complex long-duration preferred shares. He believes STRC is a turning point in corporate finance, comparing it to the iPhone moment for its accessibility and simplicity [2].

Strategy's bitcoin holdings have grown significantly with this issuance. The company purchased 21,021 BTC at an average price of $117,256, bringing its total holdings to 628,791 BTC, worth nearly $74 billion at current prices [1].

The launch of STRC positions Strategy as a leader in the digital asset and enterprise analytics sectors, offering a unique opportunity for investors seeking exposure to bitcoin through a stable and high-yield financial instrument.

References:
[1] https://finance.yahoo.com/news/michael-saylors-strategy-makes-massive-205325664.html
[2] https://finance.yahoo.com/news/why-michael-saylor-calls-strategys-164351965.html
[4] https://www.strategy.com/press/strategy-announces-4-billion-strc-at-the-market-program_07-31-2025