MicroStrategy Launches Major Fundraising Push: STRC Stock IPO Sets $2.4 Billion Target

Strategy (Nasdaq: MSTR) just made a significant move in its Bitcoin accumulation strategy by pricing a new preferred share offering. The company is launching 28 million shares of its Variable Rate Series A Perpetual Stretch Preferred Stock—known as STRC Stock—at $90 per share. This move is designed to raise approximately $2.474 billion in net proceeds, after accounting for underwriting fees and expenses.

Breaking Down the STRC Stock Details

The STRC Stock represents an interesting financial instrument for investors seeking exposure to Strategy’s Bitcoin-focused treasury strategy. Unlike common equity, these shares come with specific dividend terms and redemption features built into their structure.

The stock will generate cumulative dividends at a variable monthly rate, starting with an initial rate of 9.00% per annum calculated on a $100 stated amount per share. This monthly dividend mechanism is designed to adjust based on market conditions, specifically tracking the one-month SOFR rate. Strategy maintains the flexibility to modify the dividend rate going forward, though there are safeguards in place—the company cannot slash rates by more than 25 basis points per period, and dividends cannot fall below the prevailing SOFR rate.

Settlement and Timeline

The issuance is scheduled to settle on July 29, 2025, following standard market closing procedures. Monthly dividend payments will begin on August 31, 2025, and continue on the last calendar day of each subsequent month. This regular payment schedule provides investors with consistent cash flow from their preferred holdings.

Strategic Use of Proceeds

MicroStrategy has clearly communicated its capital allocation priorities: the bulk of these funds will flow directly into Bitcoin acquisitions. This aligns perfectly with the company’s stated mission as the world’s largest Bitcoin Treasury Company. Beyond Bitcoin purchases, the remaining proceeds will support general corporate operations and working capital needs.

Redemption and Repurchase Mechanics

Strategy retains significant flexibility in managing these securities. The company can redeem STRC Stock at $101 per share (plus accrued dividends) at any time after the stock begins trading on major exchanges. There’s a minimum $250 million threshold for partial redemptions to prevent excessive fragmentation.

The company also has a “clean-up redemption” right—if outstanding shares drop below 25% of the original issuance, Strategy can force full redemption. Additionally, fundamental change events or specific tax situations trigger repurchase rights at the liquidation preference value.

Dynamic Liquidation Preference

What sets this structure apart is the liquidation preference mechanism. Starting at $100 per share, this floor price adjusts daily based on trading activity and price performance. The preference resets to whichever is highest: the stated amount, recent trading prices (if shares were recently issued), or the ten-day moving average price. This design aims to protect downside while allowing upside participation.

Market and Underwriting Support

Morgan Stanley, Barclays, Moelis & Company, and TD Securities are orchestrating the offering as joint book-running managers. A broader syndicate including The Benchmark Company, Clear Street, and AmeriVet Securities provides additional distribution support, ensuring broad market access for investors.

Strategic Significance

This STRC Stock offering represents another chapter in Strategy’s unconventional approach to corporate finance. By tapping the capital markets with innovative preferred securities, the company continues funding its Bitcoin accumulation strategy while offering investors various risk-return profiles through different security types. The combination of variable dividends, dynamic pricing floors, and strategic redemption options creates a hybrid instrument that bridges traditional fixed-income thinking with the volatility of Bitcoin exposure.

For investors evaluating Strategy’s securities, the STRC Stock presents a middle ground—preferential claim over common equity with monthly income, yet participation in upside through the adjustable liquidation preference and dividend rate features.