Strategy announced a $4.2 billion STRC stock issuance plan, which will launch a new round of Bitcoin purchases.

In the cryptocurrency market, Strategy (formerly MicroStrategy) has once again demonstrated its firm belief in Bitcoin (BTC) and its proactive expansion strategy. On August 1, according to an announcement from Strategy, the company has signed a sales agreement to issue and sell variable interest rate Series A perpetual preferred stock (STRC Stock) with a total value of up to $4.2 billion through its "ATM Program." The funds raised will be used for general corporate purposes, including Bitcoin acquisitions, working capital, and paying preferred stock dividends.

This large-scale issuance plan coincides with Strategy's announcement of record financial performance in the second quarter, with net profit reaching $10 billion, primarily due to unrealized gains from its substantial Bitcoin holdings. This not only solidifies Strategy's position as the world's largest corporate Bitcoin holder but also signals the start of a new wave of Bitcoin acquisition.

1. STRC Stock Issuance Plan: Providing Funds for Bitcoin Acquisition

Strategy has applied for the issuance of $4.2 billion in variable rate Series A perpetual stretch preferred stock (STRC), while announcing a record net income of $10 billion for the second quarter, thanks to the unrealized gains from its substantial Bitcoin holdings.

Issuance details: Strategy has submitted a supplemental prospectus to issue its floating rate series A perpetual stretch preferred stock at "market price", with a maximum issuance scale of up to 4.2 billion USD, trading code "STRC". The sales agents include TD Securities, Barclays Capital, The Benchmark Company, Clear Street, and Morgan Stanley. The raised funds will be used for general corporate purposes, including the acquisition of Bitcoin and supplementing working capital.

Dividend Policy: STRC stock enjoys an initial liquidation priority of $100 per share and accumulates dividends on a monthly basis. The initial dividend rate is set at 9.00% per year. Strategy reserves the right to adjust future dividend rates within prescribed limits, aimed at maintaining the stock trading price around its stipulated $100. The first monthly dividend is $0.80 per share, announced on July 31, and will be paid on August 31.

Financing Milestone: The company has just raised up to $2.521 billion after the completion of its initial public offering (IPO) and purchased 21,021 Bitcoins. This issuance was sold through an effective shelf registration method, with the final prospectus supplement available through the U.S. Securities and Exchange Commission (SEC). This transaction advances Strategy's balance sheet model, which involves raising funds in the public market and converting them into additional Bitcoin reserves.

2. Record-breaking financial performance in the second quarter: Huge profits brought by Bitcoin

Strategy announced a record financial performance for the second quarter ended June 30, 2025. The company reported an operating revenue of $14.03 billion, a year-on-year increase of 7106%, primarily due to the adoption of fair value accounting, which resulted in $14 billion of unrealized gains from its holdings of Bitcoin. Net profit reached $10.02 billion, or diluted earnings per share of $32.60, compared to a net loss of $102.6 million in the second quarter of 2024.

As of June 30, 2025, the Strategy's Bitcoin holdings increased to 597,325 coins, with a total cost of $42.4 billion and a market value of $64.4 billion. The company increased its holdings by 69,140 Bitcoins this quarter through capital market activities. Year-to-date, the Strategy's Bitcoin dividend yield is 25.0%, with Bitcoin earnings of $13.2 billion.

The financing scale in the second quarter is enormous. Strategy obtained a net revenue of 6.8 billion dollars through the issuance of Class A common stock (5.2 billion dollars) and various types of preferred stock (STRK, STRF, STRD), and also conducted a 979.7 million dollars STRD initial public offering. In July, it raised another 3.7 billion dollars, including 2.5 billion dollars from the STRC initial public offering.

III. Fiscal Year 2025 Guidance and Bitcoin Strategy

Based on the assumption that the Bitcoin price will be $150,000 per coin by the end of the year, Strategy released its guidance for the fiscal year 2025, expecting operating revenue to be $34 billion, net income to be $24 billion, and diluted earnings per share to be $80. The company also raised its annual BTC dividend yield target to 30.0% and its BTC revenue target to $20 billion.

The strategy outlines a framework for managing its common stock ATM plan based on the "mNAV" indicator and introduces rule-based guidance for adjusting the future STRC dividend rate monthly, linked to recent trading prices. As of July 29, 2025, the company holds 628,791 Bitcoins.

Conclusion:

Strategy announced a $4.2 billion STRC stock issuance plan, which will be used for a new round of Bitcoin purchases, once again proving its firm commitment and unique strategy towards Bitcoin. This initiative will not only further solidify Strategy's position as the world's largest corporate Bitcoin holder but also provides a financing model for other publicly listed companies to incorporate Bitcoin into their balance sheets.