Strategy Upsizes STRC Offering to $2B for Bitcoin Buys
Strategy Increases STRC Stock Offering to $2 Billion
Strategy has increased its preferred equity raise from an initial $500 million to $2 billion, signaling a strong push to acquire more Bitcoin, according to a Bloomberg report. This move follows Strategy's announcement of its new preferred stock instrument, STRC stock.
Details of the STRC Offering
Initially, the shares were expected to be priced at $100 each. However, Bloomberg reports the offering will be priced at $90 per share, according to a person familiar with the matter. To reach the $2 billion target, the number of shares offered is expected to increase.
Investors are set to receive an initial 9% annual dividend, paid monthly. The STRC issuance marks Strategy’s fourth preferred share offering. These new shares will rank senior to Strategy’s Strike and Stride preferreds and to its common stock, but remain junior to the previously issued Strife preferreds and outstanding convertible bonds.
Bitcoin Holdings and Market Impact
According to company filings, the proceeds from this raise will be used for general corporate purposes, including the acquisition of more Bitcoin. Strategy currently holds 607,770 BTC valued at $72.4 billion, which represents about 3% of all Bitcoin in circulation.
Strategy’s common shares (MSTR) traded flat at $413 on Thursday morning, giving the company a market cap of approximately $115 billion.
Key Takeaways
- Strategy upsized its preferred equity raise from $500M to $2B to support further Bitcoin purchases.
- Strategy holds 607,770 BTC valued at $72.4B, representing around 3% of Bitcoin’s total supply.
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