August 1, 2025
5 min read
Vince Quill
Strategy expands its STRC offering twice in two weeks, raising .2B to buy more Bitcoin amid mounting investor lawsuits.
Strategy Doubles STRC Offering Twice in Two Weeks to Raise $4.2B for Bitcoin Accumulation
Bitcoin treasury company Strategy has expanded the scope of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) offering twice since its initial issuance on July 22, 2025. On July 31, Strategy announced an at-the-market offering of up to $4.2 billion of STRC, a hybrid corporate security designed to fund further Bitcoin (BTC) purchases. STRC pays dividends with variable yields, has no set maturity date, and can be called or redeemed by the company under specific conditions, providing flexible repayment terms. Initially, Strategy launched STRC in July with a target capital raise of $500 million, pegging each share of the security at $100. Just two days after the launch, the company expanded the offering to $2 billion through an initial public offering (IPO) to select investors and used the proceeds to purchase over 21,000 BTC. Strategy’s continued use of debt and equity offerings to accumulate Bitcoin has sparked debate within the crypto and investment communities. Some analysts warn that BTC treasury plays like Strategy could be bubbles poised to burst, potentially causing ripple effects in the broader crypto markets.Investor Lawsuits Against Strategy Increase
Multiple law firms have filed class action lawsuits against Strategy, alleging that the company misrepresented Bitcoin’s volatility risks and overstated projected profits. Legal experts interviewed by Cointelegraph noted the lawsuits may take years to resolve and that plaintiffs primarily claim profitability was overstated and risks understated—not entirely omitted—from disclosures. A key point of contention in the lawsuits is Strategy’s use of alternative financial metrics, which critics argue are deceptive and mask financial losses that would be revealed under standard accounting methods. The company introduced new key performance indicators (KPIs) such as BTC Yield, BTC Gain, and BTC Dollar Gain to measure financial results, which some plaintiffs claim mislead investors. Michael Saylor, Strategy’s co-founder and prominent Bitcoin advocate, has defended the company’s business model. During the latest earnings call, he stated, "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."Frequently Asked Questions (FAQ)
- What is Strategy's STRC offering?
STRC stands for Variable Rate Series A Perpetual Stretch Preferred Stock. It's a hybrid corporate security offered by Strategy designed to raise capital for purchasing Bitcoin.Strategy announced an at-the-market offering of up to $4.2 billion of STRC. This is an expansion from its initial target of $500 million.STRC pays variable yields, has no set maturity date, and can be called or redeemed by the company under specific conditions, offering flexible repayment terms.Lawsuits have been filed alleging that Strategy misrepresented Bitcoin's volatility risks and overstated projected profits, with critics pointing to the company's use of alternative financial metrics.Michael Saylor, a co-founder, defends Strategy's model, stating the company is capitalized on innovative technology and assets, and may be undervalued.