Today, Strategy (Nasdaq: MSTR; STRK; STRF) has declared its intention to carry out an initial public offering of 2,500,000 STRD shares of Strategy’s 10.00% Series A Perpetual Stride Preferred Stock.
“Strategy plans to utilize the net proceeds from the offering for general corporate purposes, which include the acquisition of bitcoin and for working capital,” the company stated in their announcement.
The STRD Stock will provide non-cumulative cash dividends at an annual rate of 10 percent, disbursed quarterly in arrears on March 31, June 30, September 30, and December 31 each year, starting from September 30, 2025. Should dividends not be declared, they will not accumulate, and Strategy asserts it isn’t obligated to compensate for missed payments.
Strategy may be permitted to redeem all outstanding STRD shares if the total number dips below 25 percent of the original issuance or if specific tax events materialize. In such instances, holders will receive a liquidation preference of $100 per share in addition to any declared and unpaid dividends.
The company mentioned, “if an occurrence that constitutes a “fundamental change” under the certificate of designations regulating the STRD Stock takes place, then holders of the STRD Stock will have the right to compel Strategy to repurchase a portion or all of their STRD Stock at a cash repurchase price equivalent to the stated amount of the STRD Stock to be repurchased, plus declared and unpaid regular dividends, if any, that will have accrued to, but not including, the fundamental change repurchase date.”
Also today, Strategy (MSTR) purchased an additional 705 Bitcoin for approximately $75 million, further enhancing its status as the largest corporate holder of Bitcoin as additional public firms continue to embrace Bitcoin treasury strategies.
As noted in their SEC filing on June 2, they acquired Bitcoin at an average price of $106,495 each between May 26 and June 1, raising their total holdings to 580,955 BTC. The purchase was financed by selling a portion of their preferred shares through an at-the-market (ATM) equity offering.
The company generated $74.6 million by selling a mix of its preferred stock classes, which included 353,511 shares of STRK preferred stock for $36.2 million and 374,968 shares of STRF preferred stock for $38.4 million. With this acquisition, Strategy’s average acquisition cost across all its Bitcoin holdings is now $70,023 per coin.
