Key Takeaways:
Strategy Inc. raised $2.52B via preferred stock to fund $BTC purchases, avoiding common equity dilution.
TD Cowen projects the firm could add 17,000 BTC over a decade using this model.
The offering marks 2025’s largest equity IPO, reinforcing Strategy’s capital efficiency edge.
Bitcoin treasury powerhouse Strategy Inc. (MSTR) has once again shaken up the crypto-finance landscape. By issuing 28 million shares of its new variable rate preferred stock, dubbed “Stretch” (STRC), at $90 apiece, the firm raised a staggering $2.52 billion. According to TD Cowen analysts, this move not only exceeded expectations but also positioned Strategy to acquire over 17,000 BTC without diluting its common equity base. The offering is being hailed as a landmark moment in corporate Bitcoin accumulation strategy.
A Capital Raise That Redefines Treasury Strategy
Strategy’s latest fundraising effort is more than just a cash injection; it’s a masterclass in capital structuring. The STRC shares, which offer cumulative variable dividends, attracted institutional interest and shattered the initial $500M target. With nearly all net proceeds earmarked for $BTC purchases, the firm could add over 20,000 BTC at current prices. TD Cowen analysts emphasized that this model allows Strategy to scale its treasury without issuing new common stock, preserving shareholder value while expanding its crypto holdings.
Why Strategy’s Model Is Hard to Beat
TD Cowen’s bullish stance on Strategy stems from its unmatched cost-of-capital advantage. By offering a suite of Bitcoin-backed securities tailored to different investor profiles, including STRC, Strike $STRK , Strife(STRF), and Stride (STRD), Strategy has created a funnel for institutional capital into Bitcoin. The firm’s “42/42” plan, targeting $84B in capital raises by 2027, further cements its role as the blueprint for corporate Bitcoin accumulation. With over 607,000 BTC already on its books, Strategy continues to lead the charge in crypto treasury innovation.
