Strategy, a prominent Bitcoin treasury company, has expanded its STRC (Variable Rate Series A Perpetual Stretch Preferred Stock) offering twice in two weeks, signaling a continued aggressive strategy towards Bitcoin accumulation. The company's recent moves involve a new at-the-market (ATM) equity program worth up to $4.2 billion for its STRC preferred shares. This follows an initial STRC offering earlier in the month that raised $2.5 billion.
The newly launched STRC program provides Strategy with the flexibility to raise capital over time, depending on market conditions. The proceeds are intended for general corporate purposes, including working capital and dividends on previously issued preferred shares. However, aligning with Strategy's objectives, a significant portion of the funds will be used to purchase additional Bitcoin.
This initiative builds upon Strategy's existing ATM programs, allowing the company to convert investor capital into digital assets, reinforcing CEO Michael Saylor's conviction in Bitcoin as a superior corporate treasury asset. Strategy's capital markets activity has generated over $10.5 billion in gross proceeds in the last four months alone. Between April and the end of June, the company secured $6.8 billion through multiple stock issuance programs, with an additional $3.7 billion raised between July 1 and July 29 via public offerings and ATM facilities.
Strategy's second-quarter earnings report showed a sharp increase in profitability, further supporting its strategic moves. Net income surged to over $2.3 billion, spurred by unrealized gains on Bitcoin holdings, during a quarter when the price of BTC soared above $110,000. This represents an almost 140% increase from Q1, demonstrating the material impact of the company's digital asset position on its bottom line.
As of July 30, Strategy holds 628,791 BTC acquired at a total cost of $46.07 billion, or $73,277 per bitcoin. The company is raising its full-year BTC Yield and "BTC $ Gain" targets to 30% and $20 billion, respectively. With the July IPO of STRC, Strategy introduced the world's first Treasury Preferred Stock, engineered for price stability and designed to deliver short-duration, high-yield to a new class of investors.
The company's May IPO of STRD stock added $979 million, and its follow-up STRD ATM launch in July has raised $17.9 million so far, with $4.2 billion still available. In addition to common equity, Strategy is leveraging preferred shares across several new products. Its STRK ATM program generated over $518 million during the same period, while the STRF ATM program raised approximately $219 million.
Strategy's approach involves "wrapping Bitcoin in securities" to attract yield-focused capital. The STRC offering, distinct from traditional equity-based models, aims to provide high-yield returns tied to Bitcoin's performance. The proceeds will be used for Bitcoin acquisitions, corporate operations, and monthly dividend distributions, potentially expanding the company's Bitcoin holdings to represent 3% of the circulating supply.
The company signed a sales agreement with TD Securities, Barclays, Morgan Stanley, Benchmark Company, and Clear Street to issue more shares of its Series A Perpetual Stretch Preferred Stock (STRC). The shares will be sold gradually through at-the-market (ATM) offerings or negotiated deals. Participating banks will act as sales agents, earning up to 2% of the gross proceeds, though they are not obligated to sell any specific amount.
Each STRC share carries a $100 liquidation preference and pays monthly cumulative dividends. The initial annual dividend rate is 9%, beginning July 29th, 2025. Strategy has the ability to adjust the dividend rate within certain bounds to help maintain the stock's market price near $100. The terms also allow Strategy to redeem shares at $101 plus any unpaid dividends, so long as at least $250 million worth of STRC remains outstanding.
