Strategy Unveils $4.2B BTC-Backed Security

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Strategy is raising more money to buy Bitcoin. Based on reports, the company filed with the US Securities and Exchange Commission on July 31 to offer up to $4.2 billion of its new Variable Rate Series A Perpetual Stretch Preferred Stock, or STRC. The move follows a recent IPO that funded another large Bitcoin purchase.

STRC Stock Sale Details

According to the filing, Strategy (formerly MicroStrategy) can sell STRC shares at market prices through TD Securities, Barclays Capital, The Benchmark Company, Clear Street, and Morgan Stanley.

Each share last traded at $94.50 on Nasdaq. There is no fixed schedule for the sales, giving the company room to pick the best moments.

Reports have disclosed that the net proceeds are to cover general corporate needs and more Bitcoin buys, but the exact split is not set yet.

Strategy (formerly MicroStrategy) reported Q2 2025 net income of $10 billion, driven by Bitcoin price gains. The company announced plans to raise $4.2 billion through STRC perpetual preferred stock to purchase additional Bitcoin. Its holdings grew nearly 20% in the quarter, from…

— Wu Blockchain (@WuBlockchain) July 31, 2025

Strategy’s recent IPO brought in $2.52 billion. Based on reports, the firm then turned $2.46 billion of its $2.47 billion net proceeds into about 21,021 BTC.

That haul lifted its total Bitcoin stash to 628,791 coins. At an average cost of $73,227 per coin, the company now owns nearly 3% of Bitcoin’s circulating supply. This big purchase shows how Strategy uses fresh capital almost immediately to boost its holdings.

Q2 Results And Targets

Strategy’s Q2 report shows operating income of about $14 billion. That number includes an unrealized gain of $14 billion on its Bitcoin holdings, driving a little over 7,000% jump from last year.

The company also posted a gross profit of $78 million from its software subscriptions and product licenses. In the first half of the year, Strategy raised more than $10 billion through at-the-market programs and IPOs.

Strategy brought in $584 million with STRK shares, $723 million with STRF, and $1 billion with STRD. The company’s leadership has set stronger targets for the rest of the year: a 30% BTC yield and $20 billion in BTC gain.

Market Impact And Outlook

According to data from BitcoinTreasuries, 285 entities hold Bitcoin in their coffers, though most own only about 3.64 BTC each. Strategy’s bold fund-raising and buying steps could keep demand high and support Bitcoin’s price in coming months.

At the same time, investors will watch whether the company can meet its dividend payouts if Bitcoin’s price dips. US regulators are also paying close attention to big corporate moves in crypto.

Strategy’s approach shows how a public company can use stock sales to add more Bitcoin to its balance sheet. It will face tests if markets get shaky. For now, its big backing of Bitcoin keeps the spotlight on how far corporate treasuries can go in the crypto world.

Featured image from Unsplash, chart from TradingView

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