Strategy upsizes STRC stock offering to $2B with plans to buy more Bitcoin

Strategy has upsized its latest preferred equity sale from $500 million to $2 billion, according to a new Bloomberg report.

The move follows Strategy’s Monday announcement of a new preferred stock instrument known as STRC stock. While the shares were initially expected to be priced at $100 each, Bloomberg reports that the offering will instead price at $90 per share, citing a person familiar with the matter.

The initial offering size was set at 5 million shares, but that number is expected to increase in order to reach the $2 billion target. At $90 per share, investors are set to receive an initial 9% annual dividend, paid monthly.

The STRC issuance marks Strategy’s fourth preferred share offering. These new shares will rank senior to Strategy’s Strike and Stride preferreds and to its common stock, but remain junior to the previously issued Strife preferreds and outstanding convertible bonds.

According to company filings, proceeds from the raise will be used for general corporate purposes, including the acquisition of more Bitcoin. Strategy currently holds 607,770 BTC valued at $72.4 billion, representing about 3% of all Bitcoin in circulation.

Strategy’s common shares (MSTR) traded flat at $413 on Thursday morning, giving the company a market cap of approximately $115 billion.