Fueled by a $2.47 billion stock raise, Strategy is preparing for another major bitcoin acquisition, reinforcing its aggressive bet on the crypto’s long-term market supremacy.
Strategy Targets Massive Bitcoin Buy With $2.5B Offering Set to Close Within Days
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Strategy Eyes Another Huge Bitcoin Allocation Pending $2.47B Raise
Software intelligence firm Microstrategy (Nasdaq: MSTR), which has rebranded as Strategy, is positioning itself for another substantial bitcoin acquisition. On July 25, the company announced the pricing of its initial public offering of 28,011,111 shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (“STRC Stock”) at $90 per share. The offering, finalized on July 24, is expected to close on July 29, subject to customary closing conditions.
“Strategy estimates that the net proceeds to it from the offering will be approximately $2.474 billion, after deducting the underwriting discounts and commissions and Strategy’s estimated offering expenses,” the company stated, adding:
Strategy intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin and for working capital.
The use of bitcoin as a primary allocation of funds shows Strategy’s continued confidence in the asset’s long-term potential and reflects its ongoing alignment with what it considers a generational investment. As of July 20, Strategy further solidified its bitcoin holdings by acquiring an additional 6,220 BTC for approximately $739.8 million—an average price of $118,940 per coin. With this latest purchase, Strategy now holds a total of 607,770 BTC, acquired for roughly $43.61 billion at an average cost of $71,756 per bitcoin.
The STRC Stock is structured with a $100 stated amount and offers an initial 9.00% annual dividend, paid monthly beginning Aug. 31. Strategy can adjust this rate monthly, subject to limits tied to market benchmarks. Missed dividends will accrue and compound until fully paid. Investors will benefit from redemption options, including the ability for Strategy to buy back shares after listing at a minimum of $101 plus accrued dividends. Additional protections apply in the event of tax changes or significant corporate events. The stock’s liquidation preference will adjust based on recent trading activity, aiming to protect shareholder value.
