Strategy could add 17,000 bitcoin to treasury without corresponding equity dilution, TD Cowen says

Bitcoin treasury company Strategy (ticker MSTR) priced 28 million shares of its new variable rate preferred stock called “Stretch” (STRC) at $90 each on July 24, raising $2.52 billion in gross proceeds. The sale, which far exceeded the company’s initial $500 million target, is the largest equity IPO of 2025 so far, according to TD Cowen.

The company plans to use nearly all of the $2.47 billion in net proceeds to purchase additional bitcoin. At an average assumed price of $120,000 per coin, that would add more than 20,500 BTC to its treasury.

“By offering a wide assortment of bitcoin‑backed securities designed to appeal to discreet classes of investors, Strategy acts as a funnel for institutional capital flows into Bitcoin,” TD Cowen’s Lance Vitanza and Jonnathan Navarrete wrote in a note to clients. “It’s a sound business model that has attracted many new entrants… no one is likely to match let alone beat Strategy’s cost‑of‑capital advantage.”

The analysts noted that over a 10‑year horizon, Strategy could add over 17,000 bitcoins to its treasury “without any corresponding common equity dilution,” even after factoring in the common stock that may need to be issued to fund cash dividends associated with the variable rate preferred offering.

Strategy’s latest STRC stock will accumulate cumulative dividends at a variable rate per annum on the stated amount of $100 per share. STRC joins other perpetual preferred shares that have no maturity date, but offer fixed dividend payments for as long as the company continues to operate. Strike (STRK) is convertible with an 8% fixed dividend, while Strife (STRF) is non-convertible and offers a 10% fixed cumulative dividend. Stride (STRD) offers a fixed 10% non-cumulative annual dividend and is non-convertible.

These programs are in addition to Strategy’s “42/42” plan, which targets a total capital raise of $84 billion in equity offerings and convertible notes for bitcoin acquisitions through 2027.

Strategy holds 607,770 BTC worth approximately $80 billion at current market prices. The company’s market cap sits at $114 billion and shares trade around $407, according to The Block’s MSTR price data.

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