Strategy Announces Launch of $500M STRC IPO to Acquire More Bitcoin

Key Takeaways:

• Strategy files for $500M IPO to fund Bitcoin purchases, offering 9% dividends on its new preferred stock (STRC).
• Strategy now holds 607,770 BTC ($74.1B), outperforming Bitcoin and S&P 500 with 104% annualized returns.
• JPMorgan plans Bitcoin-backed loans, signaling institutional adoption as regulators ease crypto restrictions.

In a recent press release, Strategy announced it has filed a registration statement for an initial public offering (IPO). The company plans to issue 5 million shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), priced at $100 per share, with the goal of raising $500 million.

Net proceeds from the offering will be used for general corporate purposes, including the acquisition of additional Bitcoins and working capital.

New 9%-Yielding Preferred Stock to Fund Further Bitcoin Growth

Since adopting its Bitcoin treasury strategy, Strategy has consistently surpassed major benchmarks. Its common stock delivered 104% annualized returns, which has far exceeded Bitcoin’s 59% and the S&P 500’s 14%.

$MSTR Debuts $STRC: $500M Variable-Rate Perpetual Preferred

$100 par, 9% initial yield, monthly variable dividend w/ SOFR floor & 25bps max cut, ratcheting liquidation preference (greater of par, 10-day VWAP, or last trade). pic.twitter.com/dZWrDFIMH4

— Dylan LeClair (@DylanLeClair_) July 21, 2025

The company’s aggressive accumulation continued in Q2 2025, adding $21 billion in digital asset value and expanding its holdings from 528,185 to 597,325 BTC. 

In just one week (July 14–20), it purchased 6,220 BTC for approximately $740 million, bringing its total reserves to 607,770 BTC, valued at $74.1 billion.

The new Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) will offer yield cumulative monthly dividends at an initial annual rate of 9%, tied to one-month SOFR and adjustable within predefined limits. Unpaid dividends will accrue and compound on a monthly basis. 

Strategy plans to actively manage dividend payments to maintain the stock's trading price near its $100 liquidation preference, which resets daily based on recent market prices or offering values.

Following listing on either Nasdaq or NYSE, the company reserves the right to redeem shares at $101 plus any accrued and unpaid dividends. 

Did you see it?

Stablecoins vs STRC.

Tether and Circle get outcompeted by Strategy. Strategy is making money that people want to have.

Pegged to $100 plus variable monthly dividend that's highest rate against market offering for short dated credit instruments. pic.twitter.com/3X5rTCv7fz

— Unvergänglicher Reichtum (@FocusofForever) July 21, 2025

Strategy maintains additional redemption flexibility through a clean-up provision that activates if outstanding shares fall below 25% of the original issuance. 

The terms further protect investors by allowing them to demand repurchase at $100 plus accumulated dividends should Strategy undergo a fundamental change or face specified tax events.

Morgan Stanley, Barclays, Moelis & Company, and TD Securities lead the offering as joint book-runners, while The Benchmark Company, Clear Street, AmeriVet Securities, Bancroft Capital, and Keefe, Bruyette & Woods will serve as co-managers.

This marks Strategy’s latest capital-raising vehicle following a $4.2 billion preferred stock deal earlier this year and underscores Michael Saylor’s commitment to expanding Bitcoin exposure through creative financing.

How Washington’s Crypto Rules Are Reshaping Finance

Companies are growing bolder with their Bitcoin dealings. 

Strategy's latest acquisition of 6,220 BTC for $739.8 million, announced on July 20, increased its reserves to 607,770 BTC. No other institution has crossed the 600,000 BTC threshold.

Meanwhile, JPMorgan plans to explore offering loans collateralized by Bitcoin and Ethereum, marking a dramatic shift for Jamie Dimon’s bank, which only in May greenlit customer Bitcoin purchases. 

Strategy’s BTC stash underscores corporate appetite for digital assets, and JPMorgan’s pivot responds to rising institutional demand; BlackRock and Fidelity have also launched crypto investment products. 

🇺🇸 $4 TRILLION BANKING GIANT JP MORGAN TO OFFER #BITCOIN BACKED LOANS

HERE WE GO!!! pic.twitter.com/1bB3kNTJOR

— Vivek⚡️ (@Vivek4real_) July 22, 2025

The proposed lending program could launch as early as 2026 under the Market Structure (CLARITY) Act’s new digital asset framework. 

Borrowers would pledge BTC or ETH against variable-rate loans, and JPMorgan also explores stablecoin initiatives to rival Tether and Circle. 

Analysts say these moves signal that Bitcoin has entered mainstream corporate finance. 

This momentum comes as Washington signals a lighter regulatory touch: the White House will unveil its Crypto Policy report on July 22, and lawmakers debate bills such as the CLARITY Act and the GENIUS Stablecoin Act—shifts that are driving financial institutions to innovate in cryptocurrency services.