Strategy Raises $2.5 Billion via New Bitcoin-Backed STRC Offering
Michael Saylor’s cryptocurrency-focused firm, Strategy, has finalized a $2.5 billion financing round through the issuance of STRC, its newly created perpetual preferred stock.
Key Details
- The offering closed through a deal involving STRC, a perpetual preferred stock class paying a floating monthly dividend starting at 9%.
- STRC is listable on US exchanges, potentially making it the first of its kind issued by a Bitcoin treasury company for monthly dividend payments, set to debut on Nasdaq.
- Funds raised were used to acquire an additional 21,021 BTC at an average price of approximately $117,256.
- This purchase brings Strategy’s total Bitcoin holdings to roughly 629,000 BTC, valued at around $73 billion at prevailing prices.
Strategic Significance
The $2.5 billion raise surpasses Strategy’s previous largest funding round, which was an $800 million convertible note offering from June 2023.
Commenting on the STRC structure, Vincent Liu, CIO at Kronos Research, stated it represents progress in “structured capital flows that deepen Bitcoin liquidity without pressuring the order book.” He noted the product offers exposure while potentially buffering volatility for income investors.
Analysts point to growing institutional demand for packaged Bitcoin exposure. “Institutions want Bitcoin exposure but need it packaged like traditional investments,” noted Ryan Yoon, Senior Analyst at Tiger Research. STRC provides such exposure in a bond-like format, suitable even for entities prohibited from direct Bitcoin purchases.
The success demonstrates investor appetite for compliant yield products offering crypto exposure with reduced operational complexity.
Challenges Ahead
Tiger Research’s Yoon also emphasized the hurdles for competitors: “Most wannabe digital asset treasury companies lack all three: credible Bitcoin reserves, Wall Street financing access, and appropriate stock valuation.”
For the Strategy model to scale more broadly, analysts suggest companies will need to establish a “brand beyond just hoping the price goes up.”
