Strategy (MSTR), the largest corporate bitcoin holder, has announced a new preferred stock offering to raise around $979.7 million. The offering comprises 11.76 million shares of 10% Series A Perpetual Stride Preferred Stock (STRD), catering to long-term investors with a fixed annual return of 10% without management fees. The shares will settle on June 10.
Unlike other offerings from Strategy, like STRF, which has a senior position and lower volatility, and STRK, which is convertible and pays a lower 8% yield, STRD offers the highest return but comes with increased risk. Notably, dividends from STRD are non-cumulative, meaning missed payments will not accumulate, and they are paid at the board's discretion. The firm indicates that funds from this offering will be allocated for general corporate use, including buying more bitcoin. In pre-market trading, Strategy's share price increased by 1.7% to $375.
Unlike other offerings from Strategy, like STRF, which has a senior position and lower volatility, and STRK, which is convertible and pays a lower 8% yield, STRD offers the highest return but comes with increased risk. Notably, dividends from STRD are non-cumulative, meaning missed payments will not accumulate, and they are paid at the board's discretion. The firm indicates that funds from this offering will be allocated for general corporate use, including buying more bitcoin. In pre-market trading, Strategy's share price increased by 1.7% to $375.
