Strategy Inc. completed a $2.5 billion preferred stock offering on July 30, 2025, using the proceeds to acquire 21,021 Bitcoin at an average price of $117,256 per coin. This purchase increased the company’s total Bitcoin holdings to 628,791 BTC, solidifying its position as the largest publicly traded firm with on-chain Bitcoin reserves [1]. The offering, which included 28 million shares of Variable Rate Series A Perpetual Preferred Stock (STRC) priced at $90 each, marked the largest US initial public offering (IPO) of the year by gross proceeds [1]. The capital raised was specifically allocated for Bitcoin acquisitions, underscoring a strategic focus on digital assets as a core treasury management tool.
The STRC offering, set to trade on Nasdaq, introduces monthly dividends tailored for income-focused investors. This perpetual preferred stock complements Strategy’s existing suite of dividend-paying securities, such as STRK, STRF, and STRD, which offer varying yields. The structure of STRC—providing regular income while aligning with Bitcoin’s price trajectory—highlights an innovative approach to blending traditional finance with cryptocurrency exposure [1]. The Nasdaq listing also represents a milestone, as it is the first US exchange-listed perpetual preferred security from a Bitcoin treasury company.
The transaction reflects broader trends in corporate Bitcoin adoption. Over 160 publicly traded firms have followed Strategy’s lead in allocating liquidity to Bitcoin, viewing the asset as a hedge against inflation and a diversification tool in low-yield environments [1]. Strategy’s ability to raise capital without diluting equity—through preferred stock—addresses regulatory and shareholder concerns while enabling large-scale Bitcoin purchases. The $2.5 billion offering, which surpassed the initial $500 million target, demonstrates investor confidence in the firm’s strategy to accumulate Bitcoin at strategic price points.
Market reactions were mixed initially. While Strategy’s shares (MSTR) dipped 2.26% post-announcement, after-hours trading saw a 0.52% rebound, closing at $396.7 [1]. The stock’s year-to-date gain of 31.55% remains modest compared to the 358.55% surge in 2024, indicating cautious optimism among investors. Upcoming quarterly earnings will provide clarity on how the recent capital raises and Bitcoin acquisitions impact the firm’s financials.
Analysts note that Strategy’s approach could influence broader market dynamics. By treating Bitcoin as a reserve asset and financing its purchases through structured equity offerings, the company mitigates liquidity risks while offering investors diversified income streams [1]. This model challenges traditional corporate treasury practices and positions Bitcoin as a legitimate, liquid asset class. However, the long-term viability of the strategy depends on Bitcoin’s price performance and the firm’s ability to navigate market volatility.
The offering also underscores the evolving role of preferred stock in corporate finance. Unlike common stock, preferred shares like STRC provide fixed dividend yields without voting rights, appealing to investors seeking steady income. The inclusion of perpetual terms—without a maturity date—adds flexibility, allowing Strategy to retain capital for extended Bitcoin acquisitions. This financial innovation aligns with the growing institutional acceptance of cryptocurrency as a strategic asset.
Sources:
[1] Bitcoin News Today: Strategy Inc. raises $2.5B in 2025’s largest IPO to buy 21K BTC, becomes largest corporate Bitcoin holder (https://www.ainvest.com/news/bitcoin-news-today-strategy-raises-2-5b-2025-largest-ipo-buy-21k-btc-largest-corporate-bitcoin-holder-2507/)
[2] Bounces Back After $2.5B STRC IPO and 21K Bitcoin Buy (https://coincentral.com/strategy-incorporated-mstr-stock-bounces-back-after-2-5b-strc-ipo-and-21k-bitcoin-buy/)
[3] [S-1/A] Nukkleus Inc. Warrants Amends IPO Registration (https://www.stocktitan.net/sec-filings/NUKKW/s-1-a-nukkleus-inc-warrants-amends-ipo-registration-statement-29095989aaf6.html)
