Strategy’s Bitcoin bet grows with new STRC preferred stock launch

Key Takeaways

• Strategy announced a new Series A preferred stock offering labeled STRC, aiming to raise funds to buy more Bitcoin.
• Strategy’s Bitcoin holdings now total 607,770 BTC, worth over $71,000 each on average.

Strategy has announced a new preferred stock issuance under the ticker STRC, joining its expanding lineup of Bitcoin-backed financing tools.

The company plans to raise funds via the offering of 5 million shares of Strategy’s Stretch Preferred Stock, also known as STRC. The new issuance, STRC, follows earlier preferred offerings, STRK, STRD, and STRF, each designed to convert investor capital into Bitcoin on Strategy’s balance sheet.

The announcement comes as Strategy disclosed earlier today that it purchased 6,220 BTC for $739.8 million in cash between July 14 and July 20 at an average price of $118,940 per coin.

With the new acquisition, Strategy now holds 607,770 BTC, purchased for roughly $43.61 billion in total. The average price of $71,756 implies paper gains of more than $28 billion as of July 21.

The new STRC stock features a $100 stated value and will pay a 9.00% initial monthly dividend, with the option for Strategy to adjust the rate under specific limits tied to market rates.

Dividends are paid in cash, and if any payments are missed, they’ll earn interest each month. The company also has the option to buy back the shares under specific conditions, such as if the stock price drops below a set level or if certain tax or listing rules are triggered.