Saylor’s Strategy Upsizes Preferred Stock Offering to $2.5B, Builds Out Custom Yield Curve

MicroStrategy’s latest move to deepen its capital markets play has drawn significant investor interest. Under the leadership of Executive Chairman Michael Saylor, the firm has finalized its largest preferred stock issuance to date, significantly upsizing its new STRC (Stretch) series offering to $2.5 billion — a fivefold increase from the originally targeted $500 million.

The STRC issuance now joins previously issued STRD, STRF, and STRK preferred shares, collectively forming Strategy’s customized credit yield curve. The new class offers investors a compelling yield of 9.5%–10.0%, with mechanisms built in to help stabilize pricing around par value.

STRC stands out for its seniority and low expected volatility, adding a short-duration layer to MicroStrategy’s funding strategy — one designed to support further bitcoin (BTC) acquisitions. “The deal is 28 million shares at $90 each,” Saylor posted on X, noting the strategic capital raise aligns with the company’s mission to expand its BTC holdings. As of Friday, bitcoin traded near $118,200.

Designed for income-seeking investors, STRC is a senior perpetual preferred stock with a variable monthly dividend. The offering is structured to maintain trading levels near $100 by incorporating a series of dynamic stabilizing tools. These include dividend adjustments, selective issuance halts, and call options triggered when the share price moves outside the $99–$101 corridor.

Specifically, if STRC trades below $99, Strategy may raise dividend rates or pause sales; if it moves above $101, the firm can issue more shares or execute call options. Dividend step-downs are limited to 25 basis points plus the maximum drop in the one-month SOFR during the measurement period.

STRC offers a yield more than double that of short-term Treasury bills or money market funds, positioning it as an attractive option for fixed-income investors seeking enhanced returns without excessive volatility. Strategy is effectively building a bespoke credit curve for the digital asset era, combining institutional finance tools with its aggressive bitcoin accumulation strategy.