Strategy’s $2.5 B Preferred Stock Issuance Fuels 21,021 BTC Acquisition and Signals New Era of Institutional Crypto Adoption

Main Points：

• Strategy acquired 21,021 BTC at an average price of $117,256 per coin, boosting its total holdings to 628,791 BTC (approx. $73 billion).
• The purchase was funded by a $2.5 billion IPO of Variable-Rate Series A Perpetual Preferred Stock (STRC) at $90 per share, the largest U.S. IPO of 2025 to date.
• STRC carries a 10% initial dividend yield, with monthly adjustable rates designed to keep the share price near par, positioning it as a Bitcoin-backed alternative to short-term Treasuries.
• Corporate “crypto-treasury” strategies have raised over $86 billion in 2025, led by Strategy and reflecting a broader trend of firms diversifying into digital assets.
• Strategy’s layered capital stack—including common equity, convertible debt, and multiple preferred stock issues—sets a template for other companies seeking uncorrelated returns.

Background on Strategy’s Capital-Raising Model

Since 2020, Strategy (formerly MicroStrategy) has pioneered the use of equity and debt products to fund Bitcoin accumulation. Rather than drawing on cash flows from its software business, the firm has issued convertible notes, common equity, and a series of preferred stock tranches—Stride, Strife, Strike, and now Stretch (STRC)—to raise capital explicitly earmarked for BTC purchases. By compartmentalizing funding through financial instruments tied to Bitcoin’s performance, Strategy has become the leading corporate Bitcoin holder, with 628,791 BTC valued at over $73 billion at current prices.

Strategy’s Layered Funding Approach

• Convertible Debt: $8 billion outstanding, currently trading out-of-the-money but designed to convert into equity if stock price recovers
  
• Common Equity: Over $120 billion market cap underpinning financial flexibility
  
• Preferred Stock (STRC): $2.5 billion raised in July 2025, used entirely for BTC purchases

Details of the STRC Offering

On July 29, 2025, Strategy closed an upsized consentless IPO of 28 million STRC shares at $90 per share, generating $2.5 billion in gross proceeds. This marks the largest U.S. IPO by proceeds so far in 2025 and the biggest perpetual preferred issuance since 2009.

• Dividend Mechanics: STRC pays an initial 10% annual yield, distributed monthly, with the board authorized to adjust rates by ±0.25% each month to maintain trading near $100.
• Trading Symbol: Listed on Nasdaq under “STRC” around July 30, 2025.
• Strategic Rationale: Marketed as a “Bitcoin-backed T-Bill,” STRC aims to attract institutional investors seeking yield with exposure to BTC’s upside.

Mechanics of the Bitcoin Acquisition

Immediately upon closing the STRC offering, Strategy deployed $2.466 billion of net proceeds to purchase 21,021 BTC at an average cost of $117,256 per coin. This transaction increased the company’s holdings from approximately 607,770 BTC to 628,791 BTC, reinforcing its status as the largest public corporate Bitcoin treasury.

<Insert Figure 1: Strategy BTC Holdings Over Time>

Market Implications and Industry Trends

The STRC issuance and subsequent BTC purchase come amid a wave of corporate crypto-treasury initiatives. As of mid-2025, over $86 billion has been raised by public companies—from toy manufacturers to hospitality chains—solely for buying Bitcoin and other tokens. Key takeaways include:

1. Diversification Demand: With bond yields at historic lows and equity volatility high, firms are diversifying balance sheets into uncorrelated digital assets.
2. Yield-Enhancement Structures: Preferred stock and convertible instruments allow companies to offer institutional investors bond-like cashflows backed by BTC performance.
3. Regulatory Backdrop: Recent SEC approvals of in-kind creation for crypto ETPs signal growing regulatory accommodation for digital-asset instruments.
4. Competitive Dynamics: Strategy’s repeated success—STRF, STRK, STRI, STRC—sets a high bar; other issuers may struggle to match its scale and Saylor’s market credibility.

Industry analysts at TD Cowen note that Strategy effectively “funnels institutional capital into Bitcoin,” creating a moat via diversified debt and equity vehicles that competitors find hard to replicate .

Conclusion

Strategy’s $2.5 billion STRC offering and the acquisition of 21,021 BTC at $117,256 per coin underscore a pivotal moment in corporate finance: the normalization of cryptocurrencies as core treasury assets. By leveraging a sophisticated capital-stack approach, Michael Saylor’s team has demonstrated a repeatable model for funding digital-asset accumulation without diluting core operations. As more companies seek yield and diversification in a low-rate environment, the success of Strategy’s “crypto-treasury” blueprint will likely catalyze further issuance of crypto-backed securities and institutional adoption of blockchain assets.