Price-pegged Crypto Treasury: Strategy to keep STRC Fund Pegged to $100
Strategy, the largest corporate Bitcoin holder, is launching an initial public offering (IPO) of 5 million shares of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) to raise funds for Bitcoin investments. The net proceeds will be used for general corporate purposes, including Bitcoin acquisition. The STRC stock will offer cumulative dividends at a variable rate, starting with an annual rate of 9%. This follows a $4.2 billion at-the-market offering aimed at buying more Bitcoin. The STRC stock is designed to trade near its stated value of $100 per share, functioning similarly to a synthetic stablecoin. Strategy recently purchased $740 million in Bitcoin, indicating confidence in its price trajectory. Bitcoin-focused treasury companies may contribute to Bitcoin becoming a $100 trillion market opportunity.
