- Saylor announced an increase in the new STRC share offering from $500 million to $2.8 billion.
- The rise was driven by strong investor demand, as the shares offer a 9% annual dividend.
- These preferred shares have higher payout priority than regular shares.
Bitcoin enthusiast and co-founder of Strategy (formerly MicroStrategy), Michael Saylor, has announced an increase in the offering of preferred shares from $500 million to $2.8 billion, citing strong investor demand, according to Bloomberg.
The new shares, named Stretch (STRC), offer a 9% annual dividend and have no fixed maturity date, an uncommon feature even among complex exchange-traded instruments.
The publication highlighted this move as further proof of Saylor’s unique strategy: transforming a former IT company into a global Bitcoin treasury giant.
Strategy initially announced the issuance of STRC shares to raise $500 million for additional Bitcoin purchases.
Despite the complexity of the company’s capital structure and rising risks, there has been overwhelming demand for the new issue. Shares are being sold at a discounted price of $90 per share, compared to the nominal $100—a move designed to attract even more investors, especially among Saylor’s retail following.
In recent years, Strategy has introduced several innovative financial instruments, including other share types such as Strike, Stride, and Strife, which have proven popular with investors.
According to a person familiar with the deal, the new Stretch shares rank above regular common shares in the capital structure but remain subordinate to convertible bonds.
The company can adjust the dividend monthly to keep the market price near $100, offering price flexibility and trust—underscoring Strategy’s unconventional approach to corporate finance.
“This is not the first example of financial engineering by Strategy. If a company is valued above its fundamental value, it is a good opportunity to raise capital,” said Campbell Harvey, professor of economics at Duke University.
Overall, Strategy’s shares have risen 43% year-to-date. The company’s total Bitcoin holdings have reached 607,770 BTC, valued at over $70 billion at the time of writing. Saylor continues to inspire other public companies to pursue similar crypto treasury strategies.
Notably, private and public companies worldwide have accumulated a total of 1.18 million BTC.
Source: https://coinpaper.com/10203/saylor-s-strategy-expands-stretch-shares-amid-surging-investor-demand