Bitcoin News Today: Strategy Inc. raises $2.47B through Bitcoin-linked preferred stock offering with 9% dividend

Strategy Inc., the holding company controlled by Michael Saylor, has raised approximately $2.47 billion through the issuance of 28 million shares of its Variable Rate Series A Perpetual Preferred Stock (STRC) priced at $90 per share. The offering, set to settle on July 29, will channel proceeds toward Bitcoin acquisitions, working capital, and general corporate purposes. The structure ties the preferred stock’s value and dividend payments to Bitcoin price movements and interest rate benchmarks, creating a hybrid instrument that blends traditional finance with crypto-linked incentives [1].

The STRC shares offer a 9% annual dividend rate, which adjusts monthly based on interest rate benchmarks and board discretion, with payouts distributed at month-end. A price stabilization mechanism ensures the stock’s trading value remains near its $100 stated amount. If prices dip below a threshold, the company may repurchase shares, while shareholders retain redemption rights in the event of a “fundamental change.” These features aim to reduce downside risk and appeal to institutional investors seeking Bitcoin exposure without direct volatility [1].

The offering’s unique design has been positioned as a “synthetic stablecoin” for yield-focused capital. Compounded dividends and Bitcoin-linked mechanics are expected to create upward pressure on STRC’s price during crypto market upswings. Analysts note that the structure aligns with Strategy’s long-term strategy to accumulate Bitcoin, which currently comprises a significant portion of its balance sheet. The move also enhances the firm’s liquidity and operational flexibility without exposing it to traditional debt risks [1].

Underwriters for the deal include Morgan Stanley, Barclays, and Moelis, with the offering executed under a shelf registration with the SEC. The final prospectus will be available before the July 29 settlement date. While the offering’s success hinges on sustained Bitcoin demand and macroeconomic conditions, it represents a novel approach to capital-raising in a market increasingly intertwined with crypto cycles.

Source: [1] [title: Michael Saylor’s Strategy Inc. Raises $2.5B With Bitcoin-Linked Preferred Stock Offering] [url: https://blockonomi.com/michael-saylors-strategy-inc-raises-2-5b-with-bitcoin-linked-preferred-stock-offering/]