Strategy (formerly MicroStrategy), the leading corporate holder of Bitcoin, is set to massively expand its newest "Stretch" (STRC) stock offering from an initial $500 million to $2 billion, aiming to turbocharge its Bitcoin acquisitions. This aggressive move comes as the company continues its long-standing mission to accumulate 1 million BTC, with new stock sales serving as the primary funding mechanism. Bitcoin recently hit an all-time high, but Strategy shows no signs of slowing its purchases.
Strategy has a well-documented history as one of the largest Bitcoin holders, a pioneering stance that has inspired numerous firms globally to adopt similar treasury strategies. The firm recently unveiled its ambitious plan to increase its Bitcoin reserves, targeting an audacious goal of holding 1 million BTC. A recent Bloomberg report indicates that Strategy's latest effort to achieve this involves a significant upsize of its STRC stock sale.
While Strategy has consistently led global Bitcoin acquisitions, this latest reported increase in the STRC offering is somewhat unorthodox. The initial $500 million offering was publicly announced days ago in a press release, but neither Strategy nor its executive chairman, Michael Saylor, have yet publicly commented on the reported $2 billion upgrade, despite their active presence on social media.
Strategy intends to sell shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) at a stated amount of $100 per share. An anonymous spokesperson reportedly called this a discounted value, as the initial dividend rate is 9.00% annually. The proceeds from these sales are earmarked primarily for the acquisition of more Bitcoin. Notably, several prominent investment banks, including Morgan Stanley, Barclays PLC, and TD Securities, are reportedly in talks to purchase these offerings, further solidifying institutional interest in Strategy's Bitcoin-centric strategy.
Currently, Strategy holds 607,770 BTC, valued at approximately $72.4 billion at Bitcoin's recent prices. The digital asset has performed well, reaching an all-time high earlier this month.
However, some analysts point to potential warning signs, suggesting that Bitcoin's growth might be slowing, which could lead to stagnation. A sudden dip in Bitcoin's price could force overleveraged firms to offload their BTC. As the leading corporate Bitcoin treasury, Strategy's substantial holdings could make it an especially potent market mover in such a scenario.
According to Bloomberg, STRC is one of at least five different stock offerings that Strategy is currently providing to the market. All of these offerings are predicated on the long-term growth and appreciation of Bitcoin.
Do you think Strategy's aggressive Bitcoin acquisition strategy will continue to pay off, or is it building a "house of cards" vulnerable to market shifts?
July 2025, Cryptoniteuae