Strategy Launches New Preferred Stock STRC at $90 – Targets $2.47B Raise for Bitcoin Acquisitions
Strategy (MSTR) has officially priced its new preferred stock, Stretch (STRC), at $90 per share—below the intended $100 face value—as part of an expanded offering closing on July 29. The company aims to raise $2.474 billion after fees, significantly exceeding the original $500M target. This comes after the offering was oversubscribed, prompting an increase to 28,011,111 shares.
Proceeds from STRC will be directed toward Bitcoin purchases and general working capital, potentially adding between 17,000 and 21,000 BTC to Strategy’s balance sheet, depending on market price. The move further extends Strategy’s approach of using preferred equity instead of dilutive common stock offerings to finance BTC acquisitions.
STRC will offer a variable cumulative dividend, initially set at 9% annualized, payable monthly in cash. Strategy retains the flexibility to adjust the dividend by up to ±0.25% per month, depending on market conditions, while aiming to maintain a $100 price peg. This may involve issuing new shares at a premium, halting sales below $99, or initiating buybacks.
Positioned between common stock and senior preferreds like STRF, STRC behaves like a short-term income bond, appealing to yield-focused investors seeking exposure to Strategy’s $BTC -centric model without direct crypto risk. Unlike other tranches, STRC is not backed by BTC, but benefits from seniority over MSTR common stock, STRK, and STRD.
Despite volatility in crypto markets, MSTR remains above $406, while Strategy’s other preferreds—STRK and STRF—continue to trade at premiums. The STRC launch signals growing investor appetite for alternative BTC-linked instruments in a dynamic yield-driven market.