- Strategy plans to raise $250 million by issuing 2.5 million STRD preferred shares.
- Funds from the STRD sale will support Bitcoin acquisitions and general company operations.
- STRD offers a 10% annual dividend and can be redeemed if <25% of shares remain outstanding.
After purchasing 705 BTC earlier on June 2, Strategy later announced a new plan to buy even more by selling 2.5 million shares of a new perpetual preferred stock. These are called Series A Stride (STRD) Preferred Shares and will be priced at $100 each.
Strategy expects to raise $250 million from the sale. The money will go toward buying more Bitcoin and supporting company operations. STRD shares will be available to institutional and select non-institutional investors. The stock offers a 10% annual dividend, paid quarterly, if approved by the board.
However, the dividends are non-cumulative. That means if Strategy skips a dividend payment, it won’t be made up later. The first possible dividend payment will be on September 30, 2025.
Strategy said the shares will not be convertible into common stock. STRD stock also has no maturity date and no required redemption. But, Strategy can redeem all shares for cash if less than 25% of the originally issued STRD stock remains outstanding.
The company can also buy back shares if tax or structural changes occur. In such cases, Strategy will pay $100 per share plus any unpaid declared dividends. The sale is being conducted under an SEC-approved shelf registration. Major banks, including Barclays, TD Securities, Morgan Stanley, and Moelis & Company, will manage the offering. Other firms like AmeriVet Securities and The Benchmark Company are also involved.
This isn’t Strategy’s first preferred stock offering. Earlier, it launched “Strike” and “Strife” shares, offering 13% and 10% annual returns. Those shares were created using AI models, according to Executive Chairman Michael Saylor.
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Strategy is the world’s largest corporate holder of Bitcoin and currently holds 580,955 BTC valued at over $61 billion. According to BitcoinTreasuries.net, that’s more than double what all other public companies combined hold.
The company has also raised funds through common stock and convertible notes. Now it’s adding preferred shares to the mix. Based on current Bitcoin prices, the $250 million could buy more than 2,300 BTC.
Saylor’s Bitcoin strategy has helped more companies consider adding Bitcoin to their balance sheets. Strategy’s stock price has more than doubled in the past year due to its aggressive crypto investments.
