Strategy reports pricing of IPO of STRC stock

Strategy reports pricing of IPO of STRC stock

MicroStrategy Incorporated, d/b/a Strategy (Nasdaq: MSTR/STRK/STRF/STRD), has announced the pricing of its initial public offering (IPO) of STRC stock. The company, known for its Bitcoin reserve strategy, will issue 28,011,111 shares of Variable Rate Series A Perpetual Stretch Preferred Stock at a public offering price of $90 per share [1].

The IPO is scheduled to settle on July 29, 2025, subject to customary closing conditions. Strategy expects to raise approximately $2.474 billion from the offering, after deducting underwriting discounts and commissions and estimated offering expenses [1].

The net proceeds from the IPO will be used for general corporate purposes, including the acquisition of Bitcoin and for working capital. The STRC stock will accumulate cumulative dividends at a variable rate per annum, with the initial monthly regular dividend rate set at 9.00% [1].

Strategy has the right to adjust the monthly regular dividend rate per annum, subject to certain restrictions. The liquidation preference of the STRC stock will initially be $100 per share and will adjust based on the highest of the stated amount per share, the last reported sale price per share on the trading day immediately before the business day, or the arithmetic average of the last reported sale prices per share for each trading day of the ten consecutive trading days preceding the business day [1].

The IPO will be managed by Morgan Stanley, Barclays, Moelis & Company, and TD Securities, with co-managers including The Benchmark Company, Clear Street, AmeriVet Securities, Bancroft Capital, Keefe, Bruyette & Woods, and Maxim Group LLC [1].

Investors can access the preliminary prospectus supplement and accompanying prospectus on the SEC’s website or by contacting the underwriters listed in the press release [1].

References:
[1] https://www.morningstar.com/news/business-wire/20250725368606/strategy-announces-pricing-of-initial-public-offering-of-strc-stock