Strategy’s $4.2B STRC Offering Spurs 21K BTC Buy and Lawsuits
Strategy expanded its at-the-market Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) offering from $500 million to $4.2 billion in July 2025 to accelerate Bitcoin accumulation. The expanded STRC offering funded the purchase of over 21,000 BTC, highlighting the company’s aggressive BTC treasury strategy.
Meanwhile, investors filed class action lawsuits alleging Strategy understated Bitcoin’s volatility and overstated projected profits. Plaintiffs challenge the use of alternative metrics such as “BTC Yield” and “BTC Gain” that they say obscure true financial performance.
Co-founder Michael Saylor defends the model as “misunderstood” and emphasizes Strategy’s strong capitalization and long-term vision. Analysts warn that large-scale BTC accumulation and ongoing legal uncertainty could heighten short-term market volatility. Traders should monitor the STRC offering and related risk disclosures for potential impact on Bitcoin market movements.
Neutral
In the short term, the expanded STRC offering and related class action lawsuits introduce uncertainty that may increase Bitcoin’s market volatility. However, Strategy’s aggressive purchase of over 21,000 BTC using the STRC offering underscores strong corporate demand, which is typically bullish for price. Over the long term, sustained institutional accumulation could support higher Bitcoin valuations. Consequently, the net impact is classified as neutral, balancing bullish accumulation against legal and disclosure risks.