Strategy purchased nearly 2.5 billion dollars worth of Bitcoin, accounting for 62% of the total BTC reserves of listed companies.

In the crypto assets market, Strategy (formerly MicroStrategy) once again demonstrates its firm belief in Bitcoin (BTC). The company recently announced that it has completed an IPO of $2.521 billion in floating interest rate Series A perpetual stretch preferred stock (STRC) and immediately utilized the proceeds to expand its Bitcoin reserves. This move increased its open interest in Bitcoin to approximately 628,791 BTC, with a total cost basis nearing $46.8 billion. According to Bitcoin treasury data, Strategy currently holds 62.3% of the total Bitcoin held by publicly traded companies, solidifying its position as the largest corporate holder of Bitcoin in the world.

STRC IPO: Injecting New Funds into Bitcoin Reserves

Strategy's STRC IPO purchased 21,021 BTC at an average price of $117,256 per share. As of July 29, the open interest has increased to approximately 628,791 BTC. The current total cost basis is about $73,227 per BTC.

The issuance price of STRC is $90 per share, totaling 28,011,111 shares, and is expected to begin trading on the Nasdaq Global Select Market around July 30. After deducting underwriting and expenses, the net proceeds from this issuance are approximately $2.474 billion, which will fund the company's latest Bitcoin acquisition.

Strategy views the STRC trading as a financing milestone, being the largest IPO in the United States in 2025 so far, and also the most extensive issuance of perpetual preferred stock listed on an exchange since 2009.

The company believes that once listed, STRC will become the first perpetual preferred security issued by a Bitcoin financial company to be listed on a U.S. exchange, paying monthly dividends and adopting a monthly dividend rate policy determined by the board.

Strategy Targeting Investors Focused on Attracting Returns

The security also introduces short-term, income-oriented instruments within the preferred stock series of the Strategy, aimed at attracting income-focused investors. The underwriters include Morgan Stanley, Barclays Bank, Moelis & Company, TD Securities (acting as co-lead bookrunners), as well as The Benchmark Company, Clear Street, AmeriVet Securities, Bancroft Capital, Keefe, Bruyette & Woods, and Maxim Group (acting as co-managers).

This issuance is sold through an effective shelf registration method, and the final prospectus supplement can be obtained from the U.S. Securities and Exchange Commission (SEC). This transaction advances the asset-liability model of Strategy, which involves raising funds in the public market and converting them into additional Bitcoin reserves.

New Product Line from Strategy: Continuously Expanding Bitcoin Reserves

Stretch is the fourth stock launched by Strategy this year. The company announced the launch of Strike (STRK) on March 9, offering an 8% fixed dividend, and established a $21 billion market value (ATM) program. On March 17, Strategy announced the issuance of the second bond, Strife (STRF), with a fixed dividend of 10%. The company set up a $2.1 billion ATM program for ongoing issuance.

The last company before the issuance of STRC was Stride (STRD), with an IPO issuance price of $85 per share, issuing 11,764,700 shares. Subsequently, a $4.2 billion ATM plan supplemented its issuance, fixing the interest rate at 10%.

Strategy successfully raised nearly $2.5 billion through the issuance of STRC preferred shares, using all of it to increase their Bitcoin holdings, once again demonstrating their firm commitment to Bitcoin as a reserve asset. This strategy not only solidified Strategy's position as the world's largest corporate Bitcoin holder but also provided a financing model for other listed companies to incorporate Bitcoin into their balance sheets.