Strategy has set the price for its Stretch Preferred Stock (STRC) offering at $90 a share. The company intends to sell 28,011,111 shares, with the sale expected to close on July 29, 2025, pending the usual closing conditions.
According to the company’s release, the offering is expected to generate roughly $2.474 billion in net proceeds after fees and expenses. The funds will be used for general corporate needs, including additional Bitcoin purchases and working capital.
As reported earlier by The CryptoTimes, each STRC share carries a $100 face value and starts with a 9% annual dividend, paid monthly. Strategy holds the right to adjust the rate but within set limits. The company aims to keep STRC trading close to $100.
If dividends aren’t paid on time, they’ll accumulate with interest as compounded dividends. All payouts will be in cash. The new STRC stock joins Strategy’s suite of Bitcoin-backed financial products as part of its aggressive crypto strategy.
Critics Raise Red Flags
Analysts at JPMorgan are against the Strateg’s way, suggesting that its debt-heavy approach could spell trouble if Bitcoin crashes. They point out that this kind of strategy ramps up the risk for shareholders. If BTC takes a hit, the company might find itself in a tough spot with its debt or even facing bankruptcy.
However, Strategy CEO Michael Saylor remains confident. He believes Bitcoin is the best treasury asset. With $2.8 billion in new capital, Strategy appears ready to double down. For now, the firm shows no signs of slowing its Bitcoin accumulation.
Also Read: Windtree Therapeutics Plans $520 Million BNB Treasury Strategy
