Strategy reports proposed IPO of STRC stock

Strategy reports proposed IPO of STRC stock

MicroStrategy Incorporated, d/b/a Strategy, has announced its intention to conduct an initial public offering (IPO) of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC Stock). The company aims to raise $500 million through the sale of 5,000,000 shares, with the proceeds earmarked for general corporate purposes, including the acquisition of Bitcoin and working capital. The IPO is subject to market and other conditions, and the offering will be made under the Securities Act of 1933, as amended.

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, with an initial monthly regular dividend rate per annum of 9.00%. However, Strategy reserves the right to adjust this rate, subject to certain restrictions, to maintain the stock's trading price close to its stated amount.

The redemption price for the STRC Stock will be $101 per share, plus any accumulated and unpaid regular dividends. Strategy will have the right to redeem all or any whole number of shares at any time, provided certain conditions are met. Additionally, if the total number of shares outstanding falls below 25% of the original offering, Strategy can initiate a clean-up redemption. Tax events may also trigger a tax redemption.

Morgan Stanley, Barclays, Moelis & Company, and TD Securities are acting as joint book-running managers for the offering, with The Benchmark Company, Clear Street, AmeriVet Securities, Bancroft Capital, and Keefe, Bruyette & Woods serving as co-managers. The offering is being made pursuant to an effective shelf registration statement on file with the Securities and Exchange Commission (SEC).

The IPO will be conducted only by means of a prospectus supplement and an accompanying prospectus, available on the SEC's website or by contacting the joint book-running managers.

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