MicroStrategy Raises $2.5B in Upsized Preferred Stock Offering to Fund Bitcoin Purchases
MicroStrategy (MSTR), led by Executive Chairman Michael Saylor, has completed its largest preferred stock issuance yet, raising $2.5 billion through its newly launched STRC shares. The offering significantly exceeded the original $500 million target, underscoring strong investor interest and the company’s continued commitment to expanding its Bitcoin holdings.
The new STRC issuance joins other preferred share classes — STRD, STRF, and STRK — helping build out a structured yield curve tailored to institutional capital. STRC ranks high in seniority with relatively low price volatility, offering a short-duration investment profile and monthly dividend payouts.
Priced at $90 per share, the 28 million STRC shares offer an effective yield between 9.5% and 10.0%. The structure includes several built-in price stabilization tools: variable dividend rates, secondary issuance control, and call options if the share price rises above par. If the price falls below $99, MicroStrategy can raise the dividend or pause issuance. If the price exceeds $101, the firm can issue more shares or call existing ones.
Dividend reductions are capped at 25 basis points plus any drop in the one-month Secured Overnight Financing Rate (SOFR), providing additional protection for yield-focused investors.
Compared to traditional short-duration instruments like Treasury bills or money market funds, STRC offers more than double the return, with a focus on maintaining price stability. It’s designed to appeal to investors seeking higher yield in a high-interest-rate environment — without the volatility of crypto itself.
The capital raised will be used to acquire additional Bitcoin, reinforcing MicroStrategy’s position as the most aggressive corporate buyer of the asset. The company currently holds more than 2.9% of the total BTC supply.
