Bitcoin mega-bull Strategy, the world’s largest corporate holder of Bitcoin, is launching a new type of stock offering designed to raise fresh capital for further cryptocurrency accumulation. The company, led by Michael Saylor, unveiled plans on Monday for an initial public offering (IPO) of 5 million shares of its new Variable Rate Series A Perpetual Stretch Preferred Stock, dubbed STRC.
Innovative Stock Design Offers Yield and Price Stability
Unlike previous offerings, STRC stock will pay out cumulative dividends at a variable rate based on a $100 per share stated value. The initial dividend is set at a 9% annualized yield, paid monthly. Strategy intends to use the proceeds for “general corporate purposes, including the acquisition of Bitcoin and for working capital.”
According to the company, the dividend rate will be adjusted monthly to maintain the stock’s price close to its $100 par value. This structure is intended to position STRC as a yield-bearing asset that also serves as a vehicle for ongoing Bitcoin purchases.
Saylor’s Strategic Pivot to Retail-Like Yield Instruments
The IPO will be available to “select investors,” according to a Monday post from Saylor on X (formerly Twitter). The launch follows closely on the heels of Strategy’s $4.2 billion at-the-market (ATM) equity offering announced July 7, a mechanism also aimed at funding more Bitcoin acquisitions.
Describing the new stock’s functionality, Bitcoin commentator Adam Livingston called it a “new financial lifeform” designed to rapidly convert fiat currency into Bitcoin. “You’re not buying stock. You’re buying a yield-targeted Bitcoin conduit,” Livingston wrote in an X post. He added that the STRC stock mimics a “synthetic stablecoin with yield,” optimized for dollar-cost averaging into BTC.
Confidence in Bitcoin Undeterred as Strategy Adds $740M More BTC
The announcement came shortly after Strategy purchased an additional $740 million in Bitcoin at an average price of $118,940 per coin on Monday. The move signals continued confidence in Bitcoin’s long-term price trajectory and its growing role in corporate treasury strategies.
Bitcoin Treasury Adoption Gathers Momentum
Commenting on the broader implications, Blockstream CEO and Hashcash inventor Adam Back suggested companies like Strategy and Japan’s Metaplanet could catalyze a massive institutional wave into Bitcoin. Back projected a future where Bitcoin represents a $100 to $200 trillion global market opportunity as public companies shift to BTC-based treasuries.
“A sustainable and scalable $100-$200 trillion trade front-running hyperbitcoinization,” Back wrote on X, calling it “scalable enough for most big listed companies to move to BTC treasury.”
As Strategy continues to experiment with novel financial instruments tied to Bitcoin, it’s not just reinforcing its dominance as a Bitcoin-centric firm—but also shaping how corporations think about holding and accumulating the digital asset.
