"Firm Plans $2.47 Billion Sale of Preferred Shares for Large-Scale Bitcoin Acquisition"
In a significant move for the digital asset market, Strategy Inc., formerly known as MicroStrategy, announced a $2.5 billion purchase of 21,021 bitcoins on July 24, 2025. This acquisition, following the completion of the largest U.S. IPO of the year through a preferred stock offering (STRC Series A), brings Strategy's total Bitcoin holdings to over 600,000 BTC, valued around $74 billion.
The purchase, dubbed the "Stretch" offering, is the biggest single corporate Bitcoin buy plan of 2025. The offering is scheduled to settle on July 29, 2025, and will be added to Strategy's suite of preferred stock offerings. The offering price is set at $90 per share, with Strategy offering 28,011,111 shares of variable-rate perpetual preferred stock.
Strategy's ongoing long-term "42/42 plan" aims to raise $84 billion to accumulate Bitcoin as a core institutional reserve asset. This plan, active since 2020, reflects Michael Saylor’s conviction in Bitcoin's future role as digital capital.
The purpose of the $2.5 billion buy is multi-fold. Firstly, it aims to reinforce Bitcoin’s role as “Digital Energy,” a term coined by Saylor that emphasizes Bitcoin’s position as a fundamental economic layer or store-of-value. Secondly, it provides investors with indirect exposure to Bitcoin via STRC preferred shares, which pay monthly dividends. Lastly, it continues establishing Bitcoin as a long-term institutional reserve asset, strengthening Strategy’s model as a “digital asset treasury” that combines fixed-income characteristics with exposure to Bitcoin's potential upside.
The Stretch offering is unique among Strategy's preferred stock offerings due to its variable dividend rate. The new offering features a variable dividend starting at 9.00% annually with monthly adjustment rights. Unlike the other offerings, Stretch does not offer a fixed-for-life dividend rate.
Strategy expects net proceeds from the sale to be approximately $2.474 billion. The company intends to reinvest the proceeds from the sale into "general corporate purposes, including the acquisition of bitcoin and for working capital."
As of the current market price of $118,325 per coin, Strategy holds approximately 607,770 Bitcoin, worth $70.4 billion. The company's Bitcoin holdings are currently tracked by Bitbo.
It is essential to note that market conditions can change rapidly, encouraging readers to verify information on their own and consult with a professional before making decisions based on this content. TD Cowen is defending Strategy Inc's Bitcoin premium blowout, highlighting the company's strategic commitment to Bitcoin.
The article aims to deliver accurate and timely information but should not be taken as financial or investment advice. The Stretch offering is the most complex of Strategy's suite of preferred stock offerings due to its variable dividend rate. The offering is subject to certain restrictions, as with all investments, potential investors should thoroughly research before making decisions.
- This year's largest corporate Bitcoin buy plan, dubbed the "Stretch" offering, represents Strategy Inc.'s aggressive approach towards investing in digital assets as part of their long-term "42/42 plan".
- By acquiring bitcoins through offerings like the Stretch, Strategy aims to establish itself as a "digital asset treasury", combining fixed-income characteristics with exposure to Bitcoin's potential upside, thus reinforcing Bitcoin’s role as a long-term institutional reserve asset.
