Michael Saylor’s Strategy, formerly MicroStrategy, is launching a bold new move to expand its Bitcoin holdings, this time through a $500 million IPO. The company has announced plans to offer 5 million shares of its new Series A Perpetual Stretch Preferred Stock (STRC) at $100 each.
Strategy aims to use the proceeds from the IPO to buy more Bitcoin and support general corporate operations. The IPO comes just days after the firm added $739 million worth of Bitcoin to its portfolio, pushing its total holdings to 607,770 BTC.
The STRC stock, also known as “Stretch,” offers monthly dividends at a variable rate. Initially, the dividend will be set at 9% annually, although Strategy can adjust this rate within certain limits.
The stock also gives Strategy the right to redeem shares at $101, plus any unpaid dividends, once listed on a global stock exchange. The new product is part of Strategy expanding the number of Bitcoin-oriented financial products, such as its recent $4.2 billion STRD offering.
STRC will also provide investors with an opportunity to have indirect exposure to Bitcoin, which will be appealing to investors who are interested in the crypto wave but do not want to have direct exposure to BTC.
Morgan Stanley, TD Securities, and Barclays will lead the IPO as joint book-running managers. With Strategy’s Bitcoin holdings now up nearly $30 billion in unrealized gains, the company continues to lead corporate Bitcoin adoption.
As of now, MSTR stock is up 0.76%, trading at $426.28, reflecting investor confidence in Saylor’s aggressive Bitcoin strategy.
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