Strategy, formerly known as MicroStrategy, is set to raise $250 million through the sale of a new class of perpetual preferred stock aimed at bolstering its Bitcoin acquisitions. The company plans to issue 2.5 million shares of its 10% Series A Perpetual Stride Preferred Stock, available at $100 per share. According to a statement released on June 2, these funds will be used for buying additional Bitcoin and for working capital.
Perpetual preferred stocks typically pay fixed dividends indefinitely without a set end date and usually hold priority over common stocks for payouts. This offering is only available to institutional and select non-institutional investors.
Strategy has established itself as the largest corporate holder of Bitcoin, currently owning 580,955 Bitcoin, valued at over $61.7 billion. Notably, this amount surpasses the combined holdings of the other 117 publicly listed companies that hold Bitcoin. The recent offering could potentially result in the acquisition of another 2,351.8 Bitcoin, given the current trading price of Bitcoin at $106,325.
Michael Saylor, co-founder and executive chairman of the company, has been the driving force behind its aggressive Bitcoin investment strategy. While holders of the Series A preferred stock (ticker: STRD) may receive dividends, these payments are not guaranteed, as they depend on the discretion of Strategy's board. Dividends, if declared, will be distributed quarterly starting September 30, 2025.
In scenarios where less than 25% of STRD shares remain, Strategy has the option to redeem these shares for cash. Additionally, if there is a 'fundamental change' in the company, STRD holders can prompt them to buy back their shares at a predetermined price plus any unpaid dividends. The stock sale will be facilitated by several prominent Wall Street banks, including Barclays and Morgan Stanley, ensuring a high-profile presence in the financial market.
Perpetual preferred stocks typically pay fixed dividends indefinitely without a set end date and usually hold priority over common stocks for payouts. This offering is only available to institutional and select non-institutional investors.
Strategy has established itself as the largest corporate holder of Bitcoin, currently owning 580,955 Bitcoin, valued at over $61.7 billion. Notably, this amount surpasses the combined holdings of the other 117 publicly listed companies that hold Bitcoin. The recent offering could potentially result in the acquisition of another 2,351.8 Bitcoin, given the current trading price of Bitcoin at $106,325.
Michael Saylor, co-founder and executive chairman of the company, has been the driving force behind its aggressive Bitcoin investment strategy. While holders of the Series A preferred stock (ticker: STRD) may receive dividends, these payments are not guaranteed, as they depend on the discretion of Strategy's board. Dividends, if declared, will be distributed quarterly starting September 30, 2025.
In scenarios where less than 25% of STRD shares remain, Strategy has the option to redeem these shares for cash. Additionally, if there is a 'fundamental change' in the company, STRD holders can prompt them to buy back their shares at a predetermined price plus any unpaid dividends. The stock sale will be facilitated by several prominent Wall Street banks, including Barclays and Morgan Stanley, ensuring a high-profile presence in the financial market.
