Strategic $2B Bitcoin Treasury Gamble: Company Doubles Down with Mega Stock Offering
Wall Street meets crypto in a high-stakes bet as one firm goes all-in on Bitcoin—funding its conviction with a jumbo-sized equity sale.
The playbook: Ditch dollar-cost averaging, deploy shareholder capital instead. The $2 billion stock offering isn't just fundraising—it's a leveraged wager on BTC becoming the new reserve asset.
Market calculus: While traditional investors clutch pearls over volatility, crypto natives see a masterclass in corporate treasury management. Or reckless speculation—depending on which Twitter thread you're reading.
The kicker: Nothing screams 'institutional adoption' like using old-school finance to fuel a crypto moonshot. Bonus points for doing it while SEC chair Gary Gensler's back is turned.
*Cynical finance jab:* Because nothing hedges against inflation like diluting your shareholders to buy an asset that drops 30% on Elon Musk's whim.
Strategy to upsize its STRC offering from $500 million to $2 billion
Business intelligence firm Strategy has reportedly increased the size of its latest preferred equity offering to $2 billion from an initial $500 million, according to a Bloomberg report on Thursday, citing a person familiar with the matter.
The offering is said to involve shares of Strategy's STRC preferred stock, which carries an initial dividend of 9%. The shares will be priced at $90 each, representing a discount below their $100 face value.
The initiative will also include five million shares managed by banks Morgan Stanley, Barclays, Moelis & Company and TD Securities.
Strategy will reportedly use the net proceeds from the offering to boost its bitcoin holdings and for other business purposes. This is not the first time the firm has upsized its stock offerings to strengthen its BTC purchases.
STRC is expected to rank higher than Strategy's Strike and Stride preferred shares, as well as its common equity, but remains below its Strife preferred stock and outstanding convertible bonds.
Neither Strategy nor its CEO, Michael Saylor, has yet to confirm the news from Bloomberg.
The development comes as Strategy acquired 6,220 BTC on Monday for roughly $740 million. The company currently holds approximately 607,770 BTC, valued at over $72 billion at Bitcoin's current price.
Strategy leads Bitcoin treasury companies, with the highest corporate stash of BTC, followed by over 140 public companies. These firms collectively hold 918,133 BTC worth about $109 billion, according to Bitcoin Treasuries data.
More corporate firms are planning to follow the playbook laid down by Strategy to adopt Bitcoin into their reserves.
However, a growing number of companies have turned towards altcoin-focused treasuries, holding top digital assets including ethereum (ETH), XRP, Solana (SOL) and BNB.
