Strategy has recently expanded its STRC offering twice, following its launch on July 22. The company aims to raise up to $4.2 billion through the sale of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), which is designed to facilitate additional acquisitions of Bitcoin (BTC). This security provides variable yields and has no maturity date, offering flexible repayment terms. Although initial plans targeted a $500 million capital raise, the offering quickly escalated to $2 billion. However, this aggressive expansion strategy has attracted class action lawsuits, with plaintiffs alleging that the company misrepresented the risks associated with Bitcoin and overstated potential profits. Specific complaints highlight the use of alternative financial metrics that some believe obscure financial losses. Amidst this, Strategy's co-founder, Michael Saylor, defended the business model by promoting the innovative technology behind Bitcoin and striving to reframe the company’s narrative as undervalued.

Source 🔗