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Smart Business Tips > Blog > Crypto > Strategy Expands STRC Offering Twice in One Week
Crypto

Strategy Expands STRC Offering Twice in One Week

Admin45
Last updated: August 1, 2025 10:43 pm
By
Admin45
4 Min Read
Strategy Expands STRC Offering Twice in One Week
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Bitcoin (BTC) treasury company Strategy has expanded the scope its STRC offering twice since issuing the corporate security on July 22.

The company announced an at-the-market offering of up to $4.2 billion of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), a hybrid corporate security, to purchase more BTC on Thursday.

STRC is a dividend-paying security with variable yields that has no set maturity date and can be called or redeemed by the company under specific conditions, making the terms of repayment flexible, according to Thursday’s announcement. 

The company launched STRC in July, pegging each share of the corporate security to $100, and was initially seeking a $500 million capital raise.

MicroStrategy, Michael Saylor, Companies
Strategy company financial metrics. Source: Strategy

Strategy expanded the scope of the raise to $2 billion two days after launching STRC to select investors through an initial public offering (IPO), and purchased over 21,000 BTC with the ensuing funds.

Its debt and equity-fueled BTC buying continues to divide the crypto and investment community. Some analysts have argued that Strategy and other BTC treasury plays are bubbles waiting to burst, which could create fallout in the crypto markets.

Related: Michael Saylor joins chorus for clarity as US works to legally define crypto

Investor lawsuits against Strategy pile up

Multiple law firms have filed litigation against the company on behalf of plaintiffs who allege that the company misrepresented Bitcoin’s volatility risks and projected profits. 

Cointelegraph spoke with multiple attorneys, who were divided on the substance of the claims and said the lawsuits may take years to resolve.

“Plaintiffs are alleging that profitability was overstated and that risks were understated, not that these things were entirely absent from disclosures,” attorney Brandon Ferrick told Cointelegraph.

MicroStrategy, Michael Saylor, Companies
One of the lawsuits against Strategy takes aim at the company’s use of alternative financial metrics. Source: PACER

Many of the lawsuits featured similar claims, namely that Strategy’s use of alternative financial metrics was deceptive, allowing the company to disguise financial losses that would be apparent if different accounting methods were used.

“The company introduced several new key performance indicators (KPIs) — namely, BTC Yield, BTC Gain, and BTC dollar Gain — to measure its financial results,” one of the class action lawsuits said.

MicroStrategy, Michael Saylor, Companies
The alternative BTC-focused metrics the company also focuses on. Source: Strategy

Strategy co-founder and Bitcoin advocate Michael Saylor pushed back against criticisms of the company’s business model, arguing that Strategy is a misunderstood enterprise.

”We’re capitalized on the most innovative technology and asset in the history of mankind; on the other hand, we’re possibly the most misunderstood and undervalued stock in the US and potentially the world,” Saylor said during the company’s most recent earnings call.

Magazine: Pakistan will deploy Bitcoin reserve in DeFi for yield, says Bilal Bin Saqib