Bitcoin News Today: Strategy Issues New Preferred Stock STRC to Expand Bitcoin Holdings

Strategy has announced the issuance of a new preferred stock, STRC, as part of its ongoing efforts to expand its Bitcoin holdings. The company plans to raise funds through the offering of 5 million shares of Strategy’s Stretch Preferred Stock, also known as STRC. This new issuance follows earlier preferred stock offerings, STRK, STRD, and STRF, each designed to convert investor capital into Bitcoin on Strategy’s balance sheet while supporting working capital.

The announcement coincides with Strategy's recent disclosure of a significant Bitcoin purchase. Between July 14 and July 20, the company acquired 6,220 BTC for $739.8 million in cash, at an average price of $118,940 per coin. With this acquisition, Strategy now holds a total of 607,770 BTC, purchased for approximately $43.61 billion. The average price of $71,756 per coin implies substantial paper gains of over $28 billion as of July 21.

The new STRC preferred stock, referred to as "Stretch," is designed to complement Strategy's growing suite of Bitcoin-linked investment products. The offering includes a variable dividend rate, an at-the-market (ATM) issuance, and a unique call option feature. The dividend will be paid monthly, with a record date on the 15th of each month and a payout on the last day of the month. At $95, Stretch could be funded at a 9.5% annual rate, and at $90, Strategy's early guidance indicated a 10% rate.

Strategy's executives have expressed enthusiasm about the new product, highlighting the monthly dividend structure as a key differentiator from other instruments. Michael Saylor, the executive chairman, emphasized that potential buyers prefer "regular free cash flow" when taking on risk. However, the launch has sparked debate, with some critics questioning whether the introduction of yet another investment instrument constitutes brilliance or brand fatigue.

Since adopting a Bitcoin standard in August 2020, Strategy has generated significant returns, claiming a 104% annualized return compared to just 59% for Bitcoin itself, and 172% over the past 12 months. The company has generated $21 billion in digital asset value to date in the second quarter of 2025, with Saylor stating that the company's success makes its balance sheet as strong as that of major tech companies.

The launch of STRC comes after Strategy disclosed a $739 million purchase of 6,220 BTC this month, further solidifying its position as a major player in the Bitcoin market. The company's aggressive Bitcoin acquisition strategy has been a key driver of its growth, and the new preferred stock offering is expected to provide additional funding for future purchases.