Record-breaking IPO of Strategy corporation raises $2.52 billion, followed by increased Bitcoin purchases in 2025.
Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) has made history as the largest U.S. IPO of 2025, raising an impressive $2.5 billion through the issuance of 28,011,111 shares priced at $90 each.
The IPO, which took place on the Nasdaq Global Select Market under the ticker "STRC", is notable for being the largest IPO by amount raised in 2025 and the largest U.S. exchange-listed perpetual preferred stock offering since 2009.
Trading Details
Trading of the STRC preferred stock commenced on or around July 30, 2025, following the pricing on July 24 and settlement on July 29, 2025.
Dividend Policy
The stock features an innovative variable dividend rate, allowing Strategy to increase or decrease the dividend rate monthly with prior notice to shareholders. This feature is intended to maintain the preferred stock trading close to its stated $100 per share value. Dividends are paid monthly, offering a flexible income stream for investors seeking exposure to bitcoin-backed securities.
Use of Proceeds
Net proceeds of about $2.474 billion after deducting underwriting fees and expenses were primarily used for general corporate purposes, including acquiring additional bitcoin and working capital. Strategy used the proceeds to purchase approximately 21,021 bitcoins at an average price of $117,256 per coin, significantly enlarging its bitcoin treasury to around 628,791 bitcoins.
Underwriters and Legal Advisors
The offering was advised by leading legal firms, including Davis Polk & Wardwell LLP, which advised the representative of the underwriters, managing SEC registration and offering documentation, and Latham & Watkins LLP, which acted as corporate counsel to Strategy on the offering, including tax advice.
The underwriters involved were represented by Davis Polk, though specific underwriting firms were not named explicitly in the sources.
Strategic Importance
Strategy is a pioneer bitcoin treasury company using equity and debt instruments to provide investors exposure to bitcoin. The STRC offering marks the first U.S. exchange-listed perpetual preferred securities issued by a bitcoin treasury company with a monthly dividend rate subject to board discretion, appealing to income-focused investors interested in bitcoin exposure.
In summary, the Strategy STRC IPO is the largest and most innovative preferred stock offering in the U.S. in 2025, combining a substantial capital raise aimed at bitcoin treasury growth with a flexible dividend framework to support shareholder value and market price stability. The new financial product, STRC, is expected to begin trading on the Nasdaq on or around July 30.
- The STRC stock, priced at $90 per share, commenced trading on the Nasdaq Global Select Market, offering investors an opportunity to trade a perpetual preferred stock derived from a bitcoin treasury company.
- In addition to capital growth, the unique dividend policy of the STRC stock allows for a flexible income stream, paying dividends monthly and pegged to a bitcoin-backed securities market.
- Investors intrigued by crypto and technology-driven finance will likely find interest in the STRC IPO, as Strategy, the issuing company, is a pioneer in using equity and debt instruments to provide exposure to bitcoin, making it a groundbreaking financial product in the market of 2025.
