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Strategy expands STRC offering twice in two weeks

2025-08-01 23:00:37

Main Idea

Strategy has expanded its STRC offering twice in two weeks to accumulate more BTC, but faces mounting class action lawsuits over its financial metrics and business model.

Key Points

1. Strategy announced an at-the-market offering of up to $4.2 billion of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) to purchase more BTC.

2. The company initially sought a $500 million capital raise with STRC but expanded it to $2 billion two days later, purchasing over 21,000 BTC.

3. Multiple law firms have filed class action lawsuits against Strategy, alleging misleading financial metrics such as BTC Yield and BTC per Share.

4. Strategy co-founder Michael Saylor defended the company's business model, calling it a 'Bitcoin development company' and claiming it is misunderstood and undervalued.

5. The lawsuits may take years to resolve, with some targeting the company's use of alternative financial metrics.

Description

The company continues to accumulate BTC through corporate equity and debt offerings, but class action lawsuits against Strategy are mounting.

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