Michael Saylor’s Strategy Launches Bitcoin-Backed STRC Preferred Stock, Raises $2.5B

Strategy (formerly MicroStrategy), led by Executive Chairman Michael Saylor, has launched its Perpetual Stretch Preferred Stock (STRC), calling it the company’s “iPhone moment.” The bitcoin-backed preferred stock aims to provide stable pricing, high yield, and easy access for income-focused investors seeking indirect exposure to BTC.

STRC pays a variable monthly dividend, initially set at 9% annualized on a $100 par value, and is overcollateralized with bitcoin at roughly 5-to-1. This structure is designed to minimize volatility and ensure the stock trades close to par value, appealing to both institutional and retail investors. Dividends are cumulative, with protections in place that prioritize STRC holders over junior securities.

The company raised $2.5 billion through the IPO of 28 million shares priced at $90 each, with proceeds earmarked for additional bitcoin purchases and general corporate use. The first dividend payment of $0.80 per share is scheduled for Aug. 31, 2025.

Following the IPO, Strategy launched a $4.2 billion at-the-market (ATM) program to issue more STRC shares as needed, maintaining trading within $99 to $101 to preserve price stability. This flexible structure allows the firm to scale its bitcoin acquisitions without selling existing holdings.

Saylor believes STRC could revolutionize corporate financing, likening its potential to Apple’s iPhone. By offering a high-yield, bitcoin-backed instrument with minimal price swings, he envisions STRC growing into a multi-hundred-billion-dollar product that redefines how companies monetize crypto treasuries while meeting demand for stable, yield-driven investments.