Strategy upsizes preferred ‘Stretch’ stock offering to raise $2.47 billion for additional bitcoin buys
Bitcoin treasury firm Strategy has more than quadrupled the size of its recently announced Series A Perpetual Stretch Preferred Stock (STRC) after strong demand for bitcoin‑focused shares. Morgan Stanley, Barclays, Moelis, and TD Securities are bookrunners on the latest Stretch sale.
Strategy Inc., formerly known as MicroStrategy, priced 28,011,111 shares of STRC at $90 a share, the company said in a Friday press release. The sale is expected to generate approximately $2.474 billion in net proceeds after deducting underwriting discounts and expenses, and is scheduled to settle on July 29. The new issuance follows yesterday’s upsize announcement and carries an initial 9% annual dividend, payable monthly.
Proceeds from Strategy’s expanded facility are earmarked to fund additional bitcoin purchases. Last week, the company spent $739.9 million generated from share sales on 6,220 BTC, increasing its holdings to 607,770, The Block’s data shows. That’s currently valued at over $72 billion and roughly 3% of bitcoin’s total supply of 21 million.
Stretch, the company’s fourth preferred stock program, reportedly ranks senior to the firm’s Strike (STRK) and Stride (STRD) preferred stock and its common shares, but subordinate to its Strife (STRF) preferred series and outstanding convertible notes.
Earlier this week, TD Cowen said the company’s preferred‑stock arsenal could help Strategy lift its holdings to nearly 900,000 BTC by 2027, arguing each share controls more bitcoin today than 18 months ago despite aggressive issuance. Strategy’s net asset value premium, the percentage by which its market cap surpasses its BTC holdings, is justified since the company can effectively borrow at low rates and stockpile crypto’s largest asset, the brokerage stated.
Strategy’s common stock is trading around $414, giving the firm a market capitalization of $124 billion, according to The Block’s data dashboard.
Updated to include additional details on the number of Stretch stocks offered and the estimated proceeds.
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