Michael Saylor’s Strategy IPO could raise $500M for Bitcoin – Here’s how
Key Takeaway
Strategy Inc. plans to raise $500 million through its STRC IPO to expand its Bitcoin holdings. The move follows a $736 million stock sale, pushing its total BTC stash past 607,000 coins.
Michael Saylor’s Strategy Inc., formerly known as MicroStrategy, is taking another bold step in its long-running commitment to Bitcoin [BTC], this time by turning to Wall Street.
The firm announced plans to launch an initial public offering (IPO) of its newly created Variable Rate Series A Perpetual Stretch Preferred Stock, labeled STRC.
Strategy’s new way of Bitcoin acquisition
According to a press release, on the 21st of July, Strategy intended to offer 5 million shares at $100 each. This could potentially raise $500 million.
The company says the capital will primarily support further Bitcoin purchases, with a portion also allocated to general working capital needs.
However, the execution of the IPO remains subject to market conditions and regulatory approvals under the Securities Act of 1933.
The press release added,
“Strategy intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin and for working capital.”
As one of the most aggressive corporate Bitcoin buyers, Strategy’s latest move signals a continued effort to deepen its crypto holdings through innovative financial instruments.
How will STRC Stock be helpful for Strategy?
Strategy’s STRC Stock is a new class of preferred shares. It offers a 9% annual dividend, paid monthly starting August 31, 2025.
Strategy can adjust the dividend rate monthly. However, strict limits prevent steep reductions.
Unpaid dividends must be cleared before any changes, and missed payments will result in interest. Also, interest compounds monthly until the full amount is paid.
Once listed on Nasdaq or NYSE, Strategy may redeem shares at $101. This includes any unpaid dividends.
The company holds redemption rights in special cases. These include tax law changes or if less than 25% of shares remain.
If a major corporate shift occurs, called a “fundamental change,” shareholders can request a buyback at $100 per share.
STRC stock has a liquidation preference starting at $100; this value can rise based on trading activity.
The offering is SEC-registered and is backed by leading investment banks. Full terms are available in the official prospectus.
What’s more?
With this, the STRC IPO joins Strategy’s expanding roster of preferred stock options, such as STRK, STRF, and STRD, alongside its ongoing at-the-market offering of common shares.
This coincided with the company recently raising $736.4 million through the sale of 1.6 million MSTR shares, bringing Strategy’s cumulative Bitcoin stash to 607,770 BTC, purchased at a total cost of $43.61 billion, averaging $71,756 per coin.
Therefore, as market watchers are keeping an eye on the market, Bitcoin slipped 0.77% over the past 24 hours, trading at $118,593.41 at press time.
Meanwhile, MSTR stock saw a 0.72% uptick in after-hours trading, closing at $426.28, according to Google Finance.
All this followed Saylor’s latest bullish post, which reignited speculation around Bitcoin reaching the $200K mark, when he said,
“Stay Humble. Stack Sats.”