The company Strategy has announced a significant expansion of its at-the-market offering for its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), aiming to raise up to $4.2 billion to purchase more Bitcoin (BTC). The STRC is a hybrid corporate security that pays a variable dividend and has no set maturity date, offering flexible repayment terms.
This is the second time the company has increased the scope of its STRC offering since its launch on July 22. Initially seeking $500 million, Strategy quickly raised the target to $2 billion and used the funds to acquire over 21,000 BTC.
Strategy's debt and equity-based approach to buying Bitcoin has created a divide among investors. Critics argue that the company's business model could be a financial bubble that, if it bursts, could negatively affect the crypto markets.
The company is also facing legal challenges, with multiple law firms filing lawsuits from plaintiffs who claim that Strategy misrepresented the risks and potential profits of its Bitcoin investments. These lawsuits allege that the company used deceptive financial metrics, such as "BTC Yield" and "BTC Gain," to obscure financial losses.
In response, Strategy's co-founder, Michael Saylor, has defended the company, stating that it is misunderstood and undervalued despite being capitalized on what he calls "the most innovative technology and asset in the history of mankind."
August 2025, Cryptoniteuae