Strategy launches Bitcoin stock pegged at $100 to increase treasury
Michael Saylor's Strategy announced plans to conduct an initial public offering of 5 million shares of Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock (STRC).
Strategy will use the net proceeds for 'general corporate purposes, including the acquisition of Bitcoin and for working capital,' it announced on Monday.
Unlike previous offerings, the STRC Stock will accumulate cumulative dividends at a variable rate on the stated amount of $100 per share. The initial monthly regular dividend will be 9% annually.
The announcement comes two weeks after Strategy announced a $4.2 billion at-the-market (ATM) offering on July 7, which functions as an equity-raising mechanism designed to enable the firm to sell newly issued shares to buy more Bitcoin.
.
The new offering will be available through an initial public offering (IPO) to 'select investors,' Saylor said in a Monday X post. STRC dividend stock to trade akin to a synthetic stablecoin?
Strategy's new offering aims to 'adjust the monthly regular dividend rate per annum in such manner as Strategy believes is designed to cause the STRC Stock to trade at prices at or close to its stated amount of $100 per share,' the announcement said.
This mechanism makes the STRC stock akin to a 'new financial lifeform' optimized to 'convert fiat into Bitcoin at velocity,' according to Bitcoin author Adam Livingston.
'Strategy can tweak the rate each month to keep $STRC trading near $100 par like a synthetic stablecoin with yield,' wrote Livingston in a Monday X post, adding:
'You're not buying stock. You're buying a yield-targeted Bitcoin conduit.'
This mechanism will enable Strategy to 'attract fiat via yield' and 'dollar-cost average into Bitcoin,' added the author.
The new stock offering was announced shortly after Strategy bought $740 million worth of Bitcoin on Monday, at an average price $118,940 per coin, signaling more confidence in Bitcoin's price trajectory.
Bitcoin-focused treasury companies like Strategy and Metaplanet may drive Bitcoin to become a $100 trillion market opportunity, according to Adam Back, co-founder and CEO of Blockstream and the inventor of Hashcash.
'A sustainable and scalable $100-$200 trillion trade front-running hyperbitcoinization. Scalable enough for most big listed companies to move to BTC treasury,' wrote Back in an April 26 X post.
Source: https://cointelegraph.com/news/strategy-bitcoin-dividend-stock-strc-ipo
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Business
40 minutes ago
- Gulf Business
Arab Bank posts solid H1 2025 results with $535.3m in net income
Arab Bank Headoffice/Image: Supplied Arab Bank Group reported strong financial results for the first half of 2025, recording a 6 per cent increase in net income after tax to $535.3m, up from $502.8m during the same period last year. The bank also maintained a robust capital position, with total equity reaching $12.5bn. The Group's assets expanded by 9 per cent to $75.2bn. Loans rose to $39.8bn, reflecting a 6 per cent increase, while deposits climbed 9 per cent to reach $55.3bn. Commenting on the results, Sabih Masri, chairman of the board of directors, stated that 'the strong results achieved in the first half of 2025 are a clear testament to the effectiveness of the bank's strategy and the resilience of its operating model.' He added that 'despite ongoing economic headwinds and regional geopolitical uncertainties, the bank continued to prudently grow its operations and deliver sustainable growth and healthy returns for shareholders.' Looking ahead, Masri affirmed the bank's long-term direction: 'The bank's commitment to executing its integrated corporate strategy and long-term vision, with a clear focus on meeting the evolving expectations of both shareholders and clients.' Merger Masri also highlighted that Arab Bank Switzerland successfully completed the merger of Gonet & Cie SA ('Gonet') and ONE swiss bank SA ('ONE'), enhancing its presence in Switzerland and other global markets. Following the merger, Arab Bank Switzerland Group's assets under management grew to CHF18bn ($22bn). Randa Sadik, chief executive officer, commented on the bank's performance: 'The underlying performance of the Group continues its growth trajectory with first half results recording a healthy increase of 5 per cent in revenue while maintaining a solid balance sheet growth of 9 per cent.' Read: Sadik further emphasised the bank's prudent approach to liquidity and asset quality: 'The Group's loan-to-deposit ratio stood at 72 per cent and credit provisions held against non-performing loans continue to exceed 100 per cent.' She added that the bank's capital adequacy ratio stood at 17.1 per cent, with a capital base primarily composed of common equity. Arab Bank's ongoing strength and strategic vision have also earned it recognition on the global stage.
Economy ME
2 hours ago
- Economy ME
Stock markets gain momentum as U.S. indices hit record highs amid mixed investor sentiment
Investors around the world were digesting a mix of optimism and uncertainty following a historic stretch of record closes in U.S. indices and crucial geopolitical developments. On Wall Street, the S&P 500 and Nasdaq Composite began trading on Tuesday near their highest levels ever, continuing a pattern of modest gains that culminated on Monday with both indices closing at new records. The Dow Jones Industrial Average opened just off its late 2024 peak, following a slight dip in the previous session. Internationally, both the MSCI World Index and European markets opened slightly lower, pausing after a strong upward run the prior week. Asian markets opened on a weaker note Tuesday as enthusiasm about the U.S.-EU trade deal faded and investors turned cautious amid a data-heavy week U.S.-EU trade announcement The focus remained on the U.S.-EU trade accord finalized over the weekend. Under this agreement, EU tariffs are set to drop to 15 percent—down from a planned 30 percent scheduled to start August 1. This announcement calmed fears of an escalating trade war and was a clear positive for multinational corporations, particularly automakers and manufacturers with cross-Atlantic supply chains. However, internal criticism—especially from France, which labeled the deal a 'submission'—highlighted ongoing disagreements within the European Union and kept investors cautious. With the U.S. still negotiating tariff deals with Canada and Mexico, and China talks ongoing, trade risks continue to hover just beneath the surface, potentially influencing market sentiment as the week unfolds. Read more: U.S. and EU strike tariff deal: Stock markets surge, euro rises as trade tensions ease Corporate earnings: Tech sector in focus Tuesday marks the beginning of a packed calendar for corporate earnings, with the spotlight firmly on America's top technology firms. Investors are closely monitoring reports from Microsoft, Apple, Amazon, and Meta for clues about the health of the tech sector—one of the most significant drivers behind the Nasdaq's recent surge. Strong guidance or surprise profits from these firms could extend the upward momentum, while any disappointment risks triggering a swift reversal. Fed awaited All eyes are also on the U.S. Federal Reserve, which convenes its July meeting on Wednesday. While the majority expectation is for rates to remain unchanged, investors are parsing every statement for hints of dovishness. With fresh PCE inflation data and critical jobs numbers due this week, even a subtle shift in the Fed's tone could ignite market moves, especially given the widespread anticipation of a continued 'higher-for-longer' rate environment. Despite record equity highs and resilience since the April 2025 sell-off, investors remain wary. The unresolved status of U.S.-China trade negotiations—and the threat of tariffs returning in mid-August—underscore the fragility of the current bullish sentiment.
Zawya
2 hours ago
- Zawya
EU's $250bln-per-year spending on US energy is unrealistic
BRUSSELS/HOUSTON - The European Union's pledge to buy $250 billion of U.S. energy supplies per year is unrealistic because it would require the redirection of most U.S. energy exports towards Europe and the EU has little control over the energy its companies import. The U.S. and EU struck a framework trade deal on Sunday, which will impose 15% U.S. tariffs on most EU goods. The deal included a pledge for the EU to spend $250 billion annually on U.S. energy - imports of oil, liquefied natural gas and nuclear technology - for the next three years. Total U.S. energy exports to all buyers worldwide in 2024 amounted to $318 billion, U.S. Energy Information Administration data showed. Of that, the EU imported a combined $76 billion of U.S. petroleum, LNG and solid fuels such as coal in 2024, according to Reuters' calculations based on Eurostat data. More than tripling those imports was unrealistic, analysts said. Arturo Regalado, senior LNG analyst at Kpler, said the scope of the energy trade envisioned in the deal "exceeds market realities." "U.S. oil flows would need to fully redirect towards the EU to reach the target, or the value of LNG imports from the US would need to increase sixfold," Regalado said. There is strong competition for U.S. energy exports as other countries need the supplies - and have themselves pledged to buy more in trade deals. Japan agreed to a "major expansion of U.S. energy exports" in its U.S. trade deal last week, the White House said in a statement. South Korea has also indicated interest in investing and purchasing fuel from an Alaskan LNG project as it seeks a trade deal. Competition for U.S. energy could drive up benchmark U.S. oil and gas prices and encourage U.S. producers to favour exports over domestic supply. That could make fuel and power costs more expensive, which would be a political and economic headache for U.S. and EU leaders. Neither side has detailed what was included in the energy deal - or whether it covered items such as energy services or parts for power grids and plants. The EU estimates its member countries' plans to expand nuclear energy would require hundreds of billions of euros in investments by 2050. Its nuclear reactor-related imports, however, totalled just 53.3 billion euros in 2024, trade data shows. The energy pledge reflected the EU's analysis of how much U.S. energy supply it could accommodate, a senior EU official said, but that would depend on investments in U.S. oil and LNG infrastructure, European import infrastructure, and shipping capacity. "These figures, again, are not taken out of thin air. So yes, they require investments," said the senior official, who declined to be named. "Yes, it will vary according to the energy sources. But these are figures which are reachable." There was no public commitment to the delivery, the official added, because the EU would not buy the energy - its companies would. Private companies import most of Europe's oil, while a mix of private and state-run companies import gas. The European Commission can aggregate demand for LNG to negotiate better terms, but cannot force companies to buy fuel. That is a commercial decision. "It's just unrealistic," ICIS analysts Andreas Schröder and Ajay Parmar said in written comments to Reuters. "Either Europe pays a super high non-market reflective price for U.S. LNG or it takes way too much LNG volumes, more than it can cope with." U.S. PRODUCTION The United States is already the EU's top supplier of LNG and oil, shipping 44% of EU LNG needs and 15.4% of its oil in 2024, according to EU data. Raising imports to the target would require a U.S. LNG expansion way beyond what is planned through 2030, said Jacob Mandel, research lead at Aurora Energy Research. "You can add on capacity," Mandel said. "But if you're talking about the scale that would be necessary to meet these targets, the $250 billion, then it's not really feasible." Europe could buy $50 billion more of U.S. LNG annually as supply increases, he said. REPLACING RUSSIA The EU has said it could import more U.S. energy as its plan advances to end Russian oil and gas imports by 2028. The EU imported around 94 million barrels of Russian oil last year - 3% of the bloc's crude purchases - and 52 billion cubic metres (bcm) of Russian LNG and gas, according to EU data. For comparison, the EU imported 45 bcm of U.S. LNG last year. Higher EU fuel purchases would, however, run counter to forecasts for EU demand to decline as it shifts to clean energy, analysts said. "There is no major need for the EU to import more oil from the U.S., in fact, its oil demand peaked a number of years ago," Schröder and Parmar said. ($1 = 0.8571 euro) (Reporting by Kate Abnett in Brussels and Arathy Somasekhar in Houston; Additional reporting by Marwa Rashad and Robert Harvey in London, Julia Payne in Brussels, Curtis Williams in Houston and Timothy Gardner in Washington; Writing by Nina Chestney; Editing by Simon Webb and Matthew Lewis)
