Strategy has unveiled a $4.2 billion stock offering aimed at expanding its Bitcoin holdings.
Strategy Announces $4.2 Billion STRC At-The-Market Programhttps://t.co/4wOYjw8B2u
— Michael Saylor (@saylor) July 31, 2025
The company signed a sales agreement with TD Securities, Barclays, Morgan Stanley, Benchmark Company, and Clear Street to issue more shares of its Series A Perpetual Stretch Preferred Stock (STRC).
The shares will be sold gradually through at-the-market (ATM) offerings or negotiated deals.
Participating banks will act as sales agents, earning up to 2% of the gross proceeds, though they are not obligated to sell any specific amount.
Strategy reiterated its long-term commitment to Bitcoin accumulation, stating that it has no fixed target and will assess market conditions when deciding on further purchases.
Each STRC share carries a $100 liquidation preference and pays monthly cumulative dividends. The initial annual dividend rate is 9%, beginning July 29th, 2025.
The company has the ability to adjust the dividend rate within certain bounds to help maintain the stock’s market price near $100.
The rate may fluctuate based on Bitcoin’s price, the company’s Bitcoin-to-debt ratio, or other Bitcoin-related metrics.
The terms also allow Strategy to redeem shares at $101 plus any unpaid dividends, so long as at least $250 million worth of STRC remains outstanding.
A full redemption may be triggered if the total number of shares drops below 25% of total issuances or in the event of a tax-related occurrence.
Shareholders can also request redemption at face value plus unpaid dividends if a fundamental change takes place.
Proceeds from the offering are expected to support general corporate activities, including Bitcoin purchases, working capital needs, and preferred dividend payments across other share classes.
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