Strategy Announces IPO Of 5 Million STRC Stock To Fund Bitcoin Purchases
Strategy announced today a proposed initial public offering of 5,000,000 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock—referred to as STRC Stock—registered under the Securities Act of 1933.
According to the company, proceeds from the IPO will be used “for general corporate purposes, including the acquisition of Bitcoin and for working capital.”
In a presentation today, Strategy showed further details on STRC. The company positioned the offering as part of its broader capital strategy to expand Bitcoin holdings while maintaining flexibility for dividend adjustments. Strategy highlighted its strong performance since adopting its Bitcoin treasury strategy, showing 104% annualized returns for $MSTR compared to 59% for Bitcoin and just 14% for the S&P 500. In Q2 2025 alone, Strategy added $21 billion in digital asset value, bringing its BTC holdings from 528,185 to 597,325.
The STRC Stock will feature cumulative monthly dividends starting at an annual rate of 9.00%. Strategy reserves the right to adjust this rate within defined limits, based on one-month term SOFR fluctuations. The company intends to manage the dividend rate in a way that “causes the STRC Stock to trade at prices at or close to its stated amount of $100 per share.” Dividends will be paid in cash, and unpaid dividends will accrue compounded interest monthly.
Strategy will also retain redemption rights. Once listed on Nasdaq or NYSE, the company may redeem all or part of the STRC Stock at $101 per share plus any unpaid dividends. Other redemption triggers include a “clean-up” redemption if outstanding shares fall below 25% of the total issued, or a “tax redemption” if certain tax-related events occur.
If a “fundamental change” occurs, shareholders may require Strategy to repurchase STRC Stock at $100 per share, plus accumulated dividends. The liquidation preference will begin at $100 and adjust daily based on recent trading data or offering prices.
The offering is led by Morgan Stanley, Barclays, Moelis & Company, and TD Securities as joint book-runners. Additional co-managers include The Benchmark Company, Clear Street, AmeriVet Securities, Bancroft Capital, and Keefe, Bruyette & Woods.
This announcement follows a separate disclosure that Strategy announced today that they acquired 6,220 BTC for approximately $740 million between July 14 and July 20, bringing its total holdings to 607,770 BTC—valued around $74.1 billion.
