Tysons Corner, VA – Strategy, formerly known as MicroStrategy, has priced its initial public offering of 28,011,111 shares of Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) at $90 per share. This strategic move, announced on July 24, 2025, aims to raise substantial capital primarily for the company's continued acquisition of Bitcoin. Financial commentator Jeff Park highlighted the unique nature of this issuance, stating in a recent tweet, > "Join me tonight 8PM EST for a quick break down of why $STRC might be the most “common equity aligned” preferred issuance to date–and why that alignment might come with some unexpected twists for the rest."
This new STRC offering is a continuation of Strategy's innovative capital-raising efforts, which include various preferred stock series like STRK, STRF, and STRD, alongside its at-the-market common stock program. The company, led by Executive Chairman Michael Saylor, has made Bitcoin accumulation its primary treasury reserve asset. By issuing preferred stock, Strategy can secure significant funding without diluting the ownership interests of its existing common stockholders, aligning with its long-term Bitcoin-centric vision.
The STRC Stock, with a stated amount of $100 per share, is designed to pay regular monthly dividends, beginning August 31, 2025, with an initial annual rate of 9.00%. Strategy intends to adjust the monthly regular dividend rate to maintain the STRC Stock's trading price at or near its $100 stated amount. This mechanism positions STRC as an attractive instrument for investors seeking steady returns and indirect exposure to Bitcoin, potentially mitigating the direct volatility of the cryptocurrency market.
Jeff Park's observation regarding STRC's "common equity aligned" nature points to its unique structure, offering a yield-bearing security that still provides exposure to Strategy's Bitcoin strategy. Unlike traditional preferred shares, its variable rate and price stabilization mechanism aim to bridge the gap between fixed-income and equity characteristics. The "unexpected twists" could refer to the innovative dividend adjustment, which aims to keep the stock price stable, or how this new financial instrument could influence the broader market for Bitcoin-backed securities.
Strategy's aggressive and diversified capital strategy underscores its commitment to expanding its Bitcoin holdings, having recently acquired substantial amounts of BTC through prior offerings. This latest preferred stock issuance further solidifies the company's position as a pioneer in corporate finance for Bitcoin integration. The market will closely watch how STRC performs and how its unique features resonate with institutional and retail investors seeking exposure to the digital asset space through structured financial products.