MicroStrategy Upsizes Preferred Stock Sale as Saylor Constructs Custom Yield Curve

MicroStrategy Upsizes Preferred Stock Offering to $2.5B as Saylor Expands Bitcoin War Chest

MicroStrategy (MSTR), led by Executive Chairman Michael Saylor, has completed a significantly upsized issuance of its new STRC preferred stock, raising $2.5 billion — far above its initial $500 million target. The move marks the firm’s largest preferred equity deal to date and adds another layer to its evolving capital structure aimed at funding ongoing Bitcoin accumulation.

The STRC issuance joins the STRD, STRF, and STRK series as part of MicroStrategy’s custom-built yield curve. STRC stands out for its senior ranking and low expected volatility, offering a 9.5% to 10.0% effective yield with built-in mechanisms to help stabilize its trading price near par.

According to Saylor, the offering includes 28 million shares priced at $90 each. The funds will support the company’s continued acquisition of BTC, which recently traded near $118,200.

STRC is a senior, perpetual preferred stock designed for yield-focused investors. It pays monthly dividends and includes price-stabilization tools such as adjustable dividend rates, issuance caps, and callable features. If STRC falls below $99, MicroStrategy can boost dividends or halt issuance. If the stock exceeds $101, the company can issue new shares or call existing ones, creating a self-balancing mechanism.

Dividend reductions are limited to 25 basis points plus any decline in the one-month SOFR benchmark, preserving income predictability for investors.

Compared to traditional short-duration investments like Treasury bills or commercial paper, STRC offers significantly higher yields with relatively limited price volatility. The product is targeted at investors seeking fixed-income alternatives in a higher-rate environment, while also aligning with MicroStrategy’s broader strategy of converting corporate capital into long-term Bitcoin holdings.

With STRC, MicroStrategy continues to blend traditional capital markets instruments with a bold crypto-native balance sheet strategy.