29 July 2025
Bitcoin Magazine
TD Cowen Says Strategy Can Purchase 17,000 Bitcoin Without Equity Dilution
Strategy (MSTR), the world’s largest corporate Bitcoin holder, has raised $2.52 billion through the IPO of its new preferred stock, Stretch (STRC), pricing 28 million shares at $90 each, surpassing the initial $500 million target. This marks the biggest equity IPO of 2025 so far, according to TD Cowen, which also noted that the structure allows Strategy to continue accumulating Bitcoin without diluting existing common shareholders.
Strategy now holds 607,770 BTC, worth about $80 billion, with a market cap of $114 billion. At the time of writing, MSTR shares trade around $406.5. Nearly all of the $2.47 billion in net proceeds will be used to buy more Bitcoin. At an assumed average price of $120,000 per BTC, Strategy could add over 20,500 BTC to its treasury.
“By offering a wide assortment of bitcoin‑backed securities designed to appeal to discreet classes of investors, Strategy acts as a funnel for institutional capital flows into Bitcoin,” TD Cowen’s Lance Vitanza and Jonnathan Navarrete wrote in a note to clients. “It’s a sound business model that has attracted many new entrants… no one is likely to match let alone beat Strategy’s cost‑of‑capital advantage.”
The STRC stock offers a variable annual dividend starting at 9%, payable monthly in cash, and is designed to maintain a trading price near its $100 par value. The company retains redemption rights once listed and offers protections like repurchase options and dividend accrual for shareholders.
Strategy continues positioning itself as the institutional gateway to Bitcoin. TD Cowen analysts noted the firm’s cost-of-capital advantage and projected it could add another 17,000 BTC over the next decade without diluting common shareholders.
This move aligns with Strategy’s aggressive Bitcoin accumulation plan, which includes its 42/42 program targeting $84 billion in capital raised for BTC purchases through 2027. It follows last week’s $740 million Bitcoin buy of 6,220 BTC.
This post TD Cowen Says Strategy Can Purchase 17,000 Bitcoin Without Equity Dilution first appeared on Bitcoin Magazine and is written by Oscar Zarraga Perez.