Strategy Doubles Down on Bitcoin Purchases Through Expanded STRC Program
Bitcoin treasury company Strategy has expanded the scope of its STRC offering twice since issuing the corporate security on July 22. According to Cointelegraph, the company announced an at-the-market offering of up to $4.2 billion of its Variable Rate Series A Perpetual Stretch Preferred Stock on Thursday.
STRC represents a dividend-paying security with variable yields that has no set maturity date. The company can call or redeem it under specific conditions, making repayment terms flexible. Strategy launched STRC in July, pegging each share to $100 and initially seeking a $500 million capital raise.
The company expanded the scope to $2 billion two days after launching STRC to select investors through an initial public offering. Strategy purchased over 21,000 BTC with the funds raised from this expanded offering. This latest announcement increases the program to $4.2 billion, representing an 840% increase from the original $500 million target.
Why This Massive Capital Raise Matters for Investors
Strategy's expanded STRC offering provides institutional and retail investors a new pathway to gain Bitcoin exposure through traditional securities markets. The preferred stock pays monthly dividends while offering potential appreciation tied to Bitcoin's performance. According to Business Wire, Strategy achieved a year-to-date BTC yield of 13.7% in the first quarter of 2025.
The company now holds 628,791 bitcoins valued at approximately $46.8 billion based on current market prices. Strategy increased its 2025 BTC yield target from 15% to 25% and raised its BTC dollar gain target from $10 billion to $15 billion. We previously reported that Michael Saylor transforms Strategy into a major Bitcoin holder with nearly 500,000 coins, noting his prediction that Bitcoin will reach $13 million per coin by 2045.
The STRC program allows Strategy to raise capital more efficiently than traditional equity offerings. The variable dividend structure helps maintain the stock price near $100 per share, creating what analysts describe as a synthetic stablecoin with yield characteristics.
Industry Implications for Corporate Bitcoin Adoption
Strategy's aggressive capital raising strategy has inspired other companies to adopt similar Bitcoin treasury models. According to Fortune, 78 companies worldwide now hold cryptocurrency in their corporate treasuries, influenced by Strategy's approach.
Corporate Bitcoin adoption faces both opportunities and risks as more companies follow Strategy's model. Some analysts argue that Strategy and other Bitcoin treasury companies represent bubbles waiting to burst, potentially creating fallout in crypto markets. Multiple law firms have filed litigation against Strategy, alleging the company misrepresented Bitcoin's volatility risks and projected profits.
The trend toward corporate Bitcoin treasuries reflects changing attitudes about inflation hedging and digital asset legitimacy. Traditional financial institutions increasingly view Bitcoin as a legitimate asset class for corporate reserves. However, regulatory uncertainty remains a challenge as companies navigate compliance requirements for cryptocurrency holdings. Strategy's success in raising over $10 billion through various securities offerings demonstrates growing institutional appetite for Bitcoin exposure through regulated financial instruments.
