Main Points:
- MicroStrategy (NASDAQ: MSTR) issued $2.5 billion in Series C perpetual preferred stock (STRC) to fund the purchase of 21,021 BTC.
- The average acquisition price for the new Bitcoin was $117,256 per BTC, increasing total holdings to 628,791 BTC as of July 2025.
- STRC marks the fourth issuance in MicroStrategy’s suite of Bitcoin-financing instruments, featuring monthly variable dividends and perpetual maturity.
- MicroStrategy’s stock has gained 31.6% year-to-date in 2025, rebounding on the announcement to $396.70 in after-hours trading.
- Institutional adoption of Bitcoin is accelerating, driven by spot BTC ETFs, efficient in-kind ETF mechanics, and corporate treasury strategies.
1. Strategic Funding and Bitcoin Acquisition
In July 2025, MicroStrategy announced the successful issuance of 28 million shares of its Series C perpetual preferred stock (STRC) at $90 per share, raising $2.5 billion—five times the $500 million target. The net proceeds were exclusively used to purchase 21,021 BTC at an average cost of $117,256 per coin. This purchase, the largest since March 31, 2025, elevated MicroStrategy’s total Bitcoin holdings to 628,791 BTC, solidifying its position as the world’s largest corporate Bitcoin treasury. BitcoinTreasuries.NET data confirms that no public company has acquired as much Bitcoin in a single transaction since that March filing.
【Figure 1: MicroStrategy Bitcoin Holdings Over Time】
Insert at this point: cumulative BTC holdings chart showing key milestones and the impact of the latest purchase.
2. STRC: A Novel Perpetual Preferred Instrument
STRC represents MicroStrategy’s fourth perpetual preferred stock series tailored to finance Bitcoin acquisition:
- STRK (“Strike”): Convertible preferred stock with an 8% fixed rate and conversion rights into MSTR common shares.
- STRF (“Strife”): Cumulative non-convertible preferred stock offering a 10% annual dividend.
- STRD (“Stride”): Non-cumulative preferred stock with a 10% dividend paid monthly.
- STRC (“Streak”): The latest issuance, perpetual and non-convertible, with dividends tied to the monthly board-adjusted rate.
STRC commenced trading on NASDAQ as the first perpetual preferred security issued by a Bitcoin treasury company in the U.S. to pay variable monthly dividends. This structure provides investors with exposure to MicroStrategy’s Bitcoin strategy while preserving corporate flexibility.
3. Impact on Balance Sheet and Market Performance
3.1 Balance Sheet Enhancement
By deploying $2.5 billion in fresh capital to Bitcoin, MicroStrategy’s balance sheet gains a liquid, appreciating asset. Assuming a spot BTC price of $117,000, this enhances reported Bitcoin assets by roughly $2.46 billion. As of June 30, 2025, the upcoming Q2 earnings release will detail how these moves—combining debt, equity, and preferred issuances—affect leverage ratios, goodwill, and equity valuation.
3.2 Stock Market Reaction
Following the announcement, MicroStrategy’s common stock (MSTR) rose 0.52% in after-hours trading to $396.70, offsetting a 2.26% decline during regular hours on the news day. Year-to-date in 2025, MSTR has climbed 31.55%, a more moderate pace compared to its extraordinary 358.55% surge in 2024 when Bitcoin nearly doubled on spot ETF approvals. Analysts attribute the continued rally to sustained Bitcoin price strength and institutional confidence in MicroStrategy’s acquisition model.
【Figure 2: MSTR Stock Price Trend (2024–2025)】
Insert at this point: line chart of MSTR share price from December 2023 through July 2025.
4. Broader Institutional Adoption Trends
4.1 Spot Bitcoin ETFs and In-Kind Mechanics
The SEC’s landmark approval of 11 spot Bitcoin ETFs on January 10, 2024, ushered in over $106 billion in ETF assets by early 2025. New developments—such as the SEC’s July 29, 2025 decision to permit in-kind creation and redemption for spot BTC and ETH ETFs—enhance efficiency, enabling authorized participants to transact directly in cryptocurrencies rather than cash. This shift promises tighter tracking of demand and reduced market friction.
4.2 Corporate Treasury Adoption
MicroStrategy pioneered corporate Bitcoin treasury strategies, inspiring over 160 public companies to explore crypto allocations via equity, debt, and hybrid instruments. BlackRock’s iShares Bitcoin Trust (IBIT) amassed $10 billion in assets by May 2024, offering a regulated bridge for traditional investors. Meanwhile, Tesla, Square, and Marathon Digital have continued incremental purchases, signaling a trend of corporate diversification into digital assets.
5. Outlook and Conclusion
MicroStrategy’s $2.5 billion STRC issuance and 21,021 BTC purchase underscore a maturing corporate approach to cryptocurrency accumulation. With Bitcoin trading near $117,000 and institutional infrastructure—ETFs, in-kind mechanics, and novel financing vehicles—solidifying, the stage is set for sustained adoption. Investors should monitor:
- Bitcoin Price Volatility: Continued price swings may impact MicroStrategy’s balance sheet and dividend coverage for STRC holders.
- Regulatory Developments: Further SEC rulings on ETH ETFs, DeFi instruments, and potential spot Litecoin and Solana ETFs could broaden market participation.
- Earnings Disclosures: Q2 2025 results, due July 31, 2025, will provide clarity on capital structure, asset valuations, and leverage.
In a landscape where traditional finance and crypto converge, MicroStrategy’s strategy exemplifies how financial engineering can drive digital asset procurement at scale, offering a blueprint for corporate investors seeking alternative returns.
