In a bold move that underscores the soaring demand for Bitcoin as a viable investment avenue, Strategy has announced a significant expansion of its preferred stock offering, raising the target from an initial $500 million to an impressive $2 billion. This revelation, reported by Bloomberg, spots Strategy—led by the visionary Michael Saylor—at the forefront of a transformative moment within the cryptocurrency and financial markets. Investors appear to be increasingly eager to gain exposure to Bitcoin through more traditional financial instruments, signaling a growing acceptance of cryptocurrency by mainstream finance.
The latest offering, intriguingly dubbed “Stretch” (STRC), marks a pivotal moment for the firm. Initially introduced just days ago, the preferred shares are set at $100 each, and the company plans to issue a staggering 5 million of them. Designed as Series A Perpetual Stretch preferred shares, these securities are projected to deliver an enticing 9% initial dividend, instantly appealing to a broad range of investors.
BREAKING: Michael Saylor’s STRATEGY plans to raise $2B for Bitcoin purchases, upsizing from $500M. pic.twitter.com/E5q9UggoCq— Bitcoin Archive (@BTC_Archive) July 24, 2025
According to Bloomberg’s sources, the shares have seen their price adjusted to $90, slightly below the face value, yet this hasn’t deterred investor interest. In fact, the heightened demand has led Strategy to quadruple the capital they aimed to raise. The new Stretch shares rank ahead of some of Strategy’s previous preferred stock offerings—like Strike (STRK) and Stride—while being subordinate to its Strife securities and certain convertible bonds. A distinctive feature of this offering is its structure: the preferred shares come with cumulative dividends and an adjustable rate, which means investors can benefit from changes in market conditions.
So, what will these funds be used for? In true fashion, Strategy has laid its cards on the table. Currently holding a staggering 607,770 BTC valued at around $43 billion, the company is fully committed to utilizing the capital raised to enhance its Bitcoin reserves further. This aggressive acquisition approach aligns with the firm’s overarching strategy of positioning Bitcoin as a core component of its treasury holdings.
📈 Michael Saylor’s @Strategy buys 6,220 BTC for $739.8M—now holds 607,770 BTC worth $43.6B. Average price: $71.7K. #Bitcoin #Cryptohttps://t.co/PAxOuP9dsD— Cryptonews.com (@cryptonews) July 21, 2025
In orchestrating this transaction, Strategy has partnered with leading financial institutions, including Morgan Stanley and Barclays, signaling the seriousness of this undertaking. “Strategy intends to use the net proceeds for purposes including acquiring Bitcoin,” a source revealed to Bloomberg. This new offering marks the fourth in a series of preferred equity initiatives by Strategy, following the launches of STRD, STRF, and STRK, further highlighting their relentless persistence in Bitcoin accumulation.
Yet, not all is without complications. Following the announcement of the STRC preferred stock offering, Strategy found itself embroiled in a legal challenge. A class-action lawsuit was filed in Delaware, alleging violations related to amendments made to their older Series A Perpetual Strike Preferred Stock (STRK). The plaintiff, David Dodge, contends that the company made improper modifications regarding the stock’s liquidation preferences without proper shareholder approval, purportedly breaching fiduciary duties. The outcome of this legal dispute remains uncertain, but it certainly adds layers of scrutiny to Strategy’s recent maneuvers.
🚨 ICYMI: @Strategy is facing a class action lawsuit over its proposed preferred stock amendment. Investors are challenging changes they say could dilute existing shareholders or unfairly benefit insiders. pic.twitter.com/oPvkkw9dZb— CryptosRus (@CryptosR_Us) July 24, 2025
Despite these challenges, the market response has been somewhat stable. On Thursday, shares of Strategy (MSTR) were trading around $413, reflecting a solid 37% increase year-to-date and a staggering 146% increase over the past 12 months. This surge mirrors the bullish trends witnessed in Bitcoin, demonstrating how intertwined these assets have become in investor consciousness.
In conclusion, Strategy’s expansion of its preferred stock offering highlights a critical juncture in the ongoing evolution of cryptocurrency in the financial sector. As the firm continues to acquire Bitcoin and enhance its treasury strategy, it faces both opportunities and hurdles. For investors and market analysts alike, keeping an eye on these developments will be essential in understanding the dynamics of Bitcoin and how they are reshaping investment strategies.
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