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TYSONS CORNER, Va. - Strategy (Nasdaq:MSTR/STRK/STRF/STRD), currently trading at $106.98 with a beta of 3.71 indicating significant market sensitivity, announced Tuesday it has closed its initial public offering of 28,011,111 shares of Variable Rate Series A Perpetual Stretch Preferred Stock, raising approximately $2.521 billion at $90 per share. According to InvestingPro, the company’s financial health score currently stands at 1.66, labeled as ’WEAK’.
The company, which describes itself as the world’s first and largest Bitcoin Treasury Company, used approximately $2.474 billion in net proceeds to purchase 21,021 bitcoins at an average price of $117,256 per bitcoin. This acquisition increases Strategy’s total bitcoin holdings to approximately 628,791 bitcoins, acquired at an average price of $73,227 per bitcoin, according to the company’s press release statement. With the company’s next earnings report due on July 31, InvestingPro subscribers can access detailed analysis and 10+ additional ProTips about Strategy’s financial outlook.
The newly issued preferred stock, trading under ticker symbol STRC, is expected to begin trading on the Nasdaq Global Select Market around July 30, 2025.
The offering represents the largest U.S. initial public offering in 2025 based on gross proceeds and the largest U.S. exchange-listed perpetual preferred stock offering since 2009, according to the company.
STRC will be the first U.S. exchange-listed perpetual preferred security issued by a Bitcoin Treasury Company to pay monthly dividends, the company stated. It will feature a board-determined monthly dividend rate policy.
Morgan Stanley, Barclays, Moelis & Company, and TD Securities served as joint book-running managers for the offering, with several other firms acting as co-managers.
Strategy, formerly known as MicroStrategy Incorporated, has adopted bitcoin as its primary treasury reserve asset, using proceeds from equity and debt financings as well as operational cash flows to accumulate the cryptocurrency. The company also provides enterprise analytics software, generating revenue of $459.28 million in the last twelve months, with a gross profit margin of 70.95%.
In other recent news, cryptocurrency-exposed stocks have shown significant volatility. Bitcoin, the largest cryptocurrency, surged past $118,000, marking a new record in its rally. However, this upward momentum was countered by a decline in cryptocurrency-linked stocks following Moody’s downgrade of the U.S. credit rating. This downgrade prompted a shift towards risk aversion among investors. Notably, Coinbase saw a decrease of 3.1%, while MicroStrategy fell by 1.2%. Hive Digital and Hut 8 experienced declines of 2.9% and 2.7%, respectively. Bitfarms dropped by 4.3%, and Cipher Mining faced a significant decrease of 6.5%. Bit Digital and Riot Platforms also saw declines of 3.8% and 1.6%, respectively. These developments highlight the sensitivity of cryptocurrency-related stocks to broader economic indicators and market sentiment.
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