Strategy, formerly MicroStrategy, has announced an upsized offering of its new Bitcoin stock product, signalling growing demand.
Strategy announced on Friday that the pricing of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) now stands at $90 per share. The firm will now be offering 28 million shares of STRC stock, a considerable upscale from the amount initially intended.
Recall that Strategy declared its intention to conduct an initial public offering of the new STRC stock on July 21, planning to offer 5 million shares of the stock. However, it upsized it today, potentially due to massive demand for the product.
Michael Saylor’s Strategy would now issue the STRC stock on July 29, 2025, subject to the fulfillment of the necessary legal and financial conditions.
Proceeds for Bitcoin Purchase
Interestingly, the upsized share offering in the planned IPO increased the proceeds from $500 million to a staggering $2.52 billion. Notably, Strategy would realize net proceeds of $2.47 billion after deductions and commissions.
As expected, Strategy would use the funds realized to purchase Bitcoin and cover other operational costs. This adds to the business intelligence company’s many approaches to raise capital for its insatiable Bitcoin thirst.
Meanwhile, the announcement also comes a few weeks after Strategy announced a $4.2 billion ATM offering to select investors. Notably, the at-the-market offering is an equity-raising mechanism that enables firms to sell newly issued shares to raise capital for the acquisition of Bitcoin.
Strategy bought 6,220 BTC ($740 million) on Monday at an average price of $118,940, extending its lead over other Bitcoin-buying public firms. It now holds 607,770 BTC valued at $70.2 billion at the current market price.
The STRC Stock: A New Capital-Generating Mechanism
Strategy announced the new perpetual preferred offering “Stretch” (STRC) on Monday. The security would join other products, such as STRD, STRK, and STRF, all of which aim to offer investors indirect exposure to Bitcoin.
However, the STRC stock brings a new dynamic. Specifically, Strategy will adjust the dividend rate per annum periodically to ensure that it maintains a price close to $100. This has similarities to stablecoins, but with a yield-bearing mechanism.
Initially, Strategy would pay the cumulative dividends to holders at an initial rate of 9% per annum on the 15th of every month. Nonetheless, Strategy reserves the right to adjust the rate as it deems fit.
MSTR Down 2% Following Announcement
Meanwhile, Strategy’s MSTR stock corrected 2% today following the announcement. At the time of writing, it has lost $8.72 from its value yesterday, trading at $406.21.
The downtrend adds to the stock’s recent sideways trend. MSTR is down 5.58% in the past five days, mirroring Bitcoin’s price underperformance. Nonetheless, it is still up 4.46% in the past month and 35.34% since the start of the year.
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