Strategy has unveiled a $4.2 billion stock offering aimed at expanding its Bitcoin holdings. 

The company signed a sales agreement with TD Securities, Barclays, Morgan Stanley, Benchmark Company, and Clear Street to issue more shares of its Series A Perpetual Stretch Preferred Stock (STRC).

The shares will be sold gradually through at-the-market (ATM) offerings or negotiated deals. 

Participating banks will act as sales agents, earning up to 2% of the gross proceeds, though they are not obligated to sell any specific amount.

Strategy reiterated its long-term commitment to Bitcoin accumulation, stating that it has no fixed target and will assess market conditions when deciding on further purchases.

Each STRC share carries a $100 liquidation preference and pays monthly cumulative dividends. The initial annual dividend rate is 9%, beginning July 29th, 2025. 

The company has the ability to adjust the dividend rate within certain bounds to help maintain the stock’s market price near $100. 

The rate may fluctuate based on Bitcoin’s price, the company’s Bitcoin-to-debt ratio, or other Bitcoin-related metrics.

The terms also allow Strategy to redeem shares at $101 plus any unpaid dividends, so long as at least $250 million worth of STRC remains outstanding. 

A full redemption may be triggered if the total number of shares drops below 25% of total issuances or in the event of a tax-related occurrence. 

Shareholders can also request redemption at face value plus unpaid dividends if a fundamental change takes place.

Proceeds from the offering are expected to support general corporate activities, including Bitcoin purchases, working capital needs, and preferred dividend payments across other share classes.