Strategy Eyes $500M via STRC IPO to Fund Bitcoin Purchases

• Strategy plans to raise $500 million through a new IPO offering 5 million shares at $100 each.

• The funds will support more Bitcoin purchases and cover general working capital.

• The new STRC stock offers monthly dividends and gives Strategy the right to redeem shares after listing.

Strategy has announced plans to raise $500 million through an initial public offering (IPO) of a new class of preferred shares. According to a press release issued on Monday, the company will offer 5 million shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) at $100 each.

The move is part of Strategy’s ongoing effort to expand its Bitcoin treasury. IPO proceeds will primarily be used to acquire additional Bitcoin and cover general working capital. The company currently holds 607,770 BTC, with its latest purchase pushing its unrealized gains to approximately $14 billion.

The IPO will depend on prevailing market conditions and marks another financing method. Strategy is exploring to deepen its crypto exposure. Strategy’s earlier preferred stock offering, STRD, was listed on Nasdaq within ten days of its announcement.

Stretch Preferred Stock Offers Monthly Dividends and Redemption Flexibility

The new STRC shares will pay monthly dividends at a variable rate, with an initial annualized yield set at 9.00%. Strategy retains the right to adjust the monthly dividend, subject to certain limits. Any reduction beyond 25 basis points must correspond with an increase in interest rate volatility based on the secured overnight financing rate.

The company also holds the right to redeem STRC shares after they are listed on a global stock exchange. Each redeemed share will be priced at $101, plus any unpaid dividends. The liquidation preference for STRC shares is set at $100.

The STRC IPO will be jointly managed by Morgan Stanley, TD Securities, and Barclays as book-running managers.

The IPO announcement follows Strategy’s continued commitment to Bitcoin as a core reserve asset. The company’s stock (MSTR) gained nearly 1% following the news, trading at $426.28.

With STRC, Strategy offers investors indirect Bitcoin exposure through dividend-paying preferred stock while maintaining flexibility for future capital management. Strategy remains a leading example of corporate Bitcoin adoption as institutional interest in crypto assets rises.