Strategy (MSTR), the largest corporate holder of Bitcoin, has significantly expanded its STRC preferred stock raise to $2 billion, up from an initially planned $500 million, according to recent market disclosures.
Michael Saylor’s Expansion Strategy Drives Demand
The move comes as Executive Chairman Michael Saylor continues to leverage financial engineering to expand the company’s Bitcoin holdings. Originally announced on Monday, the offering was set to include 5 million shares priced at $100 each, targeting $500 million in total proceeds.
However, investor demand and a broader push to secure capital led the firm to quadruple the raise to $2 billion by increasing the total share offering volume.
This capital raise reflects both investor confidence in Saylor’s long-term Bitcoin vision and the firm’s ability to access alternative funding markets during macroeconomic uncertainty.
STRC Offering Priced at $90 Per Share
While the original price per share was set at $100, the current offering is expected to be priced at $90 per share, which sits at the bottom of the marketed range. This 10% discount appears to be a strategic move to boost participation in the offering, especially as markets remain sensitive to interest rate and inflation pressures.
Despite the discounted pricing, the STRC shares come with a compelling 9% dividend yield, designed to attract yield-seeking investors in a low-growth environment.
Market Reaction Remains Muted Amid Bitcoin Stability
Interestingly, Strategy’s common stock (MSTR) saw minimal movement following the announcement, as Bitcoin remained stable near $118,000. This suggests investors are taking a wait-and-see approach regarding how the new capital will be deployed—likely toward additional Bitcoin accumulation or related infrastructure investments.
The STRC, short for “Stretch,” marks Strategy’s latest innovation in corporate finance, offering fixed-income investors exposure to a company with a heavy Bitcoin footprint.
Strategy Doubles Down on Bitcoin-Backed Capital Model
The expansion of Strategy’s preferred share offering to $2 billion underscores the firm’s aggressive capital acquisition strategy under Saylor’s leadership.
With a 9% dividend and discounted share entry, STRC offers a hybrid between traditional yield and crypto-tied corporate risk—a blend that could reshape how firms finance digital asset exposure.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.