In a bold move reflecting both confidence in Bitcoin's long-term potential and a response to robust investor enthusiasm, Michael Saylor's company, Strategy, is set to complete a major stock offering aimed at raising $2.47 billion through the sale of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC Stock).
This strategic funding initiative, designed to bolster Bitcoin acquisitions, underscores Saylor’s unwavering commitment to expanding the company’s cryptocurrency reserves.
As investors flock to this offering, the implications for Strategy and the broader digital currency landscape are noteworthy.
Let’s explore the details of this offering, its significance for Bitcoin reserves, and how the investment community is responding.
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Key Takeaways
- Michael Saylor's company, Strategy, is raising $2.47 billion through a large preferred stock offering to expand Bitcoin reserves.
- The demand for STRC Stock spurred an increase from an initial 5 million share offering to over 28 million shares.
- Major financial institutions are backing the offering, reflecting strong investor interest in Strategy's plans to acquire more Bitcoin.
Overview of the STRC Stock Offering
In a bold move indicative of the growing interest in cryptocurrency investment, Michael Saylor's company, Strategy, has announced a significant expansion to its preferred equity offering.
Initially proposing a sale of 5 million shares, the offering has been ramped up to an impressive 28,011,111 shares of Variable Rate Series A Perpetual Stretch Preferred Stock (STRC Stock).
With a price set at $90 per share, this venture is projected to raise a staggering $2.47 billion, aimed primarily at further enhancing Strategy’s impressive Bitcoin holdings.
The settlement for this funding round is expected on July 29, 2025, aligning with Strategy's strategic goal of capital deployment to bolster its Bitcoin reserves.
The offering stands to attract considerable attention, especially given the initial dividend rate of
9.00% which can undergo monthly adjustments.
In addition, it includes appealing features such as compounded dividends and specific rights for redemption, making it an attractive prospect for investors.
Should a 'fundamental change' occur within the company, shareholders have the option to request repurchase of their shares at $100 plus any accrued unpaid dividends, providing a safety net for investors.
Notably, Strategy’s recent acquisition of 6,220 BTC for around $740 million, bringing its total to an impressive 607,770 BTC worth over $74 billion, underscores the company’s aggressive stance in the cryptocurrency market.
The involvement of reputable financial institutions like Morgan Stanley and Barclays as joint book-runners further solidifies the offering's credibility and potential success, capturing the attention of both seasoned investors and cryptocurrency enthusiasts.
Impact on Bitcoin Reserves and Investor Response
The latest developments at Strategy highlight a pivotal moment for both institutional investors and the cryptocurrency market as a whole.
With the expanded offering of the STRC Stock, Strategy is not only capitalizing on rising investor demand but is also reinforcing its commitment to accumulating Bitcoin.
This move comes at a time when market dynamics are shifting, and increased participation from traditional finance is being witnessed, further legitimizing the digital asset space.
As the firm’s Bitcoin reserves grow, the ripple effects on overall market sentiment can be profound, potentially influencing price movements and attracting more investors.
Strategy's recent transactional behavior indicates a bullish outlook on Bitcoin, and the substantial backing by established banks like Morgan Stanley and Barclays adds a layer of trust, paving the way for future ventures and possibly setting a benchmark for how corporate strategy can embrace cryptocurrency for growth and stability.
By Wolfy Wealth - Empowering crypto investors since 2016
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