MicroStrategy’s $2.5B Preferred Stock Offering Expands Capital Strategy for Bitcoin Accumulation
MicroStrategy (MSTR), led by Executive Chairman Michael Saylor, has completed a significantly upsized preferred stock sale, raising $2.5 billion through its new STRC issuance—its largest to date. The proceeds will support the company’s ongoing initiative to acquire more Bitcoin, further cementing its role as a leading corporate BTC holder.
The STRC shares add a new dimension to MicroStrategy’s capital stack, joining previous preferred offerings (STRD, STRF, STRK) to form a structured credit yield curve. STRC carries senior ranking, low expected volatility, and a short-duration profile. The security features a monthly variable dividend yield between 9.5% and 10.0%, designed to appeal to income-focused investors.
Originally planned as a $500 million raise, overwhelming investor demand pushed the offering to 28 million shares priced at $90 each. According to Saylor’s post on X, this aggressive scaling reflects market appetite for yield and confidence in MicroStrategy’s Bitcoin-centric balance sheet.
The STRC instrument includes several mechanisms to maintain a trading range near par value. These include:
- Adjustable dividend rates tied to market pricing
- Share issuance pauses when the stock trades below $99
- Callable features above $101
The structure creates a dynamic pricing buffer and aims to deliver consistent returns with limited downside volatility.
Dividend reductions, if any, are capped at 25 basis points plus the maximum decline in the one-month SOFR benchmark during the adjustment period—providing added income protection.
Compared to conventional short-term debt instruments like Treasury bills or money market funds, STRC offers more than double the typical yield, positioning it as a competitive option for investors seeking stable returns without direct crypto risk.
This latest capital raise reinforces MicroStrategy’s unique positioning at the intersection of corporate finance and digital assets, as the company continues to build out a long-duration Bitcoin treasury backed by innovative financing instruments.
