**Michael Saylor’s Strategy Raises $2.47 Billion for Bitcoin Acquisition**
**Meta Description:** Michael Saylor’s Strategy has expanded its preferred equity sale to $2.47 billion to enhance its Bitcoin holdings, with a scheduled IPO on July 29, 2025.
**URL Slug:** michael-saylor-strategy-bitcoin-acquisition
**Michael Saylor’s Strategy Raises $2.47 Billion for Bitcoin Acquisition**
In a significant move to bolster its Bitcoin reserves, Michael Saylor’s Strategy has officially priced its initial public offering (IPO) of 28,011,111 shares of Variable Rate Series A Perpetual Stretch Preferred Stock (STRC Stock) at $90 per share. This offering is projected to generate approximately $2.474 billion in net proceeds, with the settlement date set for July 29, 2025.
The capital raised from this IPO will be allocated for general corporate purposes, including the acquisition of additional Bitcoin and working capital. This announcement follows a previous disclosure regarding the STRC IPO, which initially proposed a 5 million share offering. The company decided to expand the offering size in response to robust investor interest.
The STRC Stock features a variable monthly dividend, starting with an initial annualized rate of 9.00%, payable in cash and subject to monthly adjustments. While the company retains the right to modify this rate, any reductions are strictly limited by spread constraints based on the one-month term SOFR rate. Strategy aims to maintain the trading price of STRC Stock close to its stated value of $100 per share. If any regular dividends go unpaid, compounded dividends will accrue, and the company holds redemption rights once the shares are listed on major exchanges like Nasdaq or NYSE. The stock can be redeemed at $101 per share, plus any unpaid dividends, with specific conditions allowing for clean-up and tax-related redemptions.
In the event of a “fundamental change,” shareholders of STRC may require the company to repurchase their shares at $100 per share, plus any accumulated dividends. The liquidation preference begins at $100 per share and will adjust daily based on the highest of three values: the stated amount, recent market prices, or the 10-day average.
This initiative aligns with Strategy’s broader capital deployment plan, which focuses on expanding its Bitcoin holdings. Recently, the firm disclosed a purchase of 6,220 BTC for approximately $740 million, bringing its total Bitcoin holdings to 607,770 BTC, currently valued at over $74 billion.
Morgan Stanley, Barclays, Moelis & Company, and TD Securities are serving as joint book-runners for this offering, with co-managers including The Benchmark Company, Clear Street, AmeriVet Securities, Bancroft Capital, Keefe, Bruyette & Woods, and Maxim Group LLC.
**FAQ**
**What is the purpose of Michael Saylor’s preferred equity sale?**
The preferred equity sale aims to raise $2.47 billion to enhance Bitcoin acquisitions and support general corporate purposes, reflecting the company’s commitment to expanding its Bitcoin reserves.
