The strategy plans to raise $500 million through a new preferred stock IPO to fund further Bitcoin acquisitions and corporate spending.
The STRC stock offers variable monthly dividends, starting at an annualized 9% rate, with limited adjustment flexibility.
Leading investment banks, including Morgan Stanley, will manage the IPO, pending favorable market conditions for the offering.
Strategy, formerly known as MicroStrategy, has revealed plans for a new initial public offering (IPO) aimed at deepening its Bitcoin exposure. The company announced that it will offer 5 million shares of its Variable Rate Series A Perpetual Stretch Preferred Stock, named STRC, priced at $100 each.
The offering is projected to raise $500 million, and proceeds will primarily go toward acquiring more Bitcoin. Strategy also intends to allocate part of the funds for general corporate needs and working capital. The IPO plan closely follows the company’s recent $739 million Bitcoin purchase, which pushed its total holdings to 607,770 BTC.
Dividend Structure and Market Conditions to Guide Launch
STRC stockholders will receive monthly dividends, initially set at an annualized rate of 9.00 percent. Although the company retains authority to revise the rate, any reduction is capped at 25 basis points plus adjustments linked to interest rate volatility, as measured by the secured overnight financing rate.
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The preferred stock comes with a $100 per share liquidation preference and includes a $101 redemption option available to the company after the listing is finalized. Strategy holds full discretion to redeem outstanding shares and pay any accrued dividends up to the redemption date.
Underwriting Managed by Leading Financial Institutions
The offering will be led by Morgan Stanley, TD Securities, and Barclays, who are acting as joint book-running managers. The IPO timeline will remain flexible, pending favorable market conditions. The company continues to expand its securities portfolio, following a previous $4.2 billion STRD issuance.
With Bitcoin prices staying strong, Strategy currently sits on an unrealized gain of approximately $30 billion. Its aggressive purchase strategy positions the firm as a dominant force among corporations investing in cryptocurrency. Shares of Strategy (MSTR) rose nearly 1 percent to $426.28 following the IPO announcement.
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