Strategy launches IPO fundraising of $500 million to increase Bitcoin, current total Holdings reach 607,770 BTC.

Michael Saylor's Strategy (formerly MicroStrategy) plans to raise $500 million through the issuance of variable interest rate perpetual preferred stock (STRC) for an IPO, aiming to continue expanding its Bitcoin holdings. Currently, the company holds over 607,000 coins.

Strategy issuance of STRC stock, plans to raise 500 million dollars

The Strategy company recently announced plans to launch an IPO to support its Bitcoin accumulation strategy. This IPO will issue 5 million shares of variable interest rate Series A perpetual preferred stock (referred to as STRC) to investors, with a price of $100 per share, and the total fundraising scale is expected to reach $500 million.

The official statement indicates that the funds will primarily be used to purchase Bitcoin, with the remainder allocated for the company's daily operations:

"Strategy plans to use the net proceeds from this issuance for general corporate purposes, including Bitcoin acquisitions and working capital."

This IPO closely follows the new round of Bitcoin purchases by Strategy earlier that day, bringing its total holdings to 607,770 BTC, setting a record for the company's holdings.

STRC stock offers variable dividends, indirectly accessing the Bitcoin market

The preferred stock issued this time is called "Stretch" and will provide monthly variable interest rate dividends, with an initial annual dividend rate of 9%. Strategy Company reserves the right to adjust the monthly dividend rate, but there are certain restrictions on reductions.

Specifically, unless the interest rate fluctuations significantly increase, the monthly dividend reduction shall not exceed 25 basis points plus the volatility increment determined by the secured overnight financing rate (SOFR).

In addition, Strategy has the right to redeem STRC shares at any time after the stock is listed on global exchanges, with a redemption price of $101 per share, plus any unpaid dividends.

The STRD preferred shares previously issued by Strategy were successfully listed on NASDAQ within 10 days after the announcement, providing a listing precedent for this STRC.

Bitcoin exposure + dividend advantages attract investors, strong lineup of underwriters

Although the preferred shares do not directly hold Bitcoin, the funds will be used for BTC purchases, and STRC shareholders can indirectly benefit from the rise in Bitcoin through dividend income. Therefore, it is viewed as an alternative investment tool that has exposure to Bitcoin.

The current IPO is jointly managed by Morgan Stanley, TD Securities, and Barclays Bank, adding confidence to this financing.

After the announcement, the stock price of Strategy's parent company MSTR rose nearly 1%, reaching $426.28. Currently, Strategy has unrealized gains of $14 billion from its Bitcoin holdings, firmly maintaining its position as the leader in corporate Bitcoin investments.

Conclusion: Strategy expands Bitcoin investment channels through structured preferred stock IPOs, demonstrating continued optimism from institutional capital towards digital assets. For crypto users, paying attention to this new trend of combining traditional financial instruments with Bitcoin can help seize investment opportunities brought about by market regulation.