Key Takeaways
Strategy has raised $206 million through its at-the-money preferred stock program, with the proceeds earmarked for further Bitcoin acquisitions, according to a May 12 disclosure. The capital raise restarts the company’s Bitcoin purchasing after a one-week pause and comes just as the unique funding vehicle returned to its target price.
"How can the SEC let Saylor get away with public comments that $STRC is suitable for retirees whose primary investment objectives are low-risk wealth preservation and income?" economist and prominent crypto critic Peter Schiff said in a post on X. Schiff argued the marketing of the instrument could violate SEC antifraud and marketing rules.
The firm issued 2.12 million STRC shares as the stock reclaimed its $100 par value, a key threshold for the at-the-money program. Data from Bitcoin Treasuries shows trading volume surged to nearly $445 million on May 11 as the stock held in a tight range between $99.99 and $100.01. The proceeds could allow for the purchase of more than 2,500 BTC at current prices.
The move reinforces Strategy's playbook of using structured financial products to fund its treasury growth. With the company already holding over 818,000 BTC, this fresh capital signals its intent to continue accumulating, even as it faces questions about the risk profile of its funding instruments. The STRC stock, designed by Executive Chairman Michael Saylor, offers an 11.5% annual yield and is structured to incentivize buying when it dips below par.
This latest purchase follows a $43 million acquisition of 535 BTC just last week. The relentless pace of accumulation has made Strategy the largest corporate holder of Bitcoin, controlling roughly 4% of the asset's total fixed supply. The STRC program is a core component of this strategy, allowing the company to raise capital for Bitcoin buys without the same level of dilution as a common stock offering. The machine is running again.
This article is for informational purposes only and does not constitute investment advice.
