Strategy's July 2025 sale of preferred stock tied to Bitcoin (BTC) generated about $2.521 billion in gross proceeds, illustrating how the company used dividend-paying securities to fund Bitcoin purchases.
The issue was Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock, known by its ticker STRC. Its estimated net proceeds totaled about $2.474 billion, which Strategy directed toward the acquisition of 21,021 BTC. The sale was an early example of this financing approach.
Preferred shares in this model have no maturity date. Issuers may sell more shares when the shares' trading price rises above par, then use the proceeds to buy BTC. That gives companies a way to raise money from investors while linking the financing to Bitcoin holdings.
Investors receive dividends from the issuing company, while spot Bitcoin exchange-traded products offer direct exposure to BTC. Preferred shareholders remain exposed to the issuer's financial health and Bitcoin's performance over time. For an issuer, the financing rationale depends on Bitcoin gains exceeding dividend costs.
