Michael Saylor’s firm Strategy, formerly MicroStrategy, is doubling down on Bitcoin with a $500 million IPO of a new preferred stock called “Stretch” (ticker: STRC). The move aims to raise fresh capital to acquire more BTC, solidifying Strategy’s dominance as the largest corporate Bitcoin holder globally.
The IPO targets institutional investors with Series A Perpetual Preferred shares priced between $90 to $95, slightly below the original $100 offering. These shares offer a 9% dividend and are designed to be adjusted monthly, making them attractive in volatile market conditions. This structure enables Strategy to fine-tune dividend rates with a maximum annual reduction of 0.25%, tied to the one-month SOFR rate.
In an official X (formerly Twitter) post, Michael Saylor introduced “Stretch” as a game-changing financial instrument to fund Bitcoin acquisitions while offering investors flexible income exposure.
Strategy’s Bold Bitcoin Play Pays Off
Since announcing the IPO, Strategy’s shares have soared 47%, generating $119 billion in revenue and boosting the company’s BTC holdings by over $71 billion. Its common shares also gained 0.4% in after-hours trading, reaching $428.
Strategy plans to prioritize this new Stretch stock over its existing common, Strike, and Stride preferred shares. The transition will occur after the company fulfills its obligations related to convertible bonds and previously issued preferred shares.
Goldman Sachs veterans, including Barclays Plc, Moelis & Co., TD Securities, and Morgan Stanley, are managing the IPO, with initial pricing expected on Thursday.
Controlling Over 3% of All Bitcoin in Circulation
The U.S. SEC recently confirmed that Strategy owns 6,220 BTC, worth $739.8 million, as of July 20. Combined with past acquisitions, its total Bitcoin stash has reached 607,770 BTC, approximately 3.05% of the total 19.9 million BTC in circulation. This cache is valued at $72 billion.
Saylor’s Bitcoin strategy, launched in 2020, has used common equity, preferred shares, and debt to build a massive BTC portfolio. The company views Bitcoin as a hedge against inflation and a long-term store of value.
With the STRC IPO, Strategy reinforces its belief in Bitcoin as a treasury reserve asset and aims to maintain its leadership in institutional crypto adoption.
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