Key Takeaways:
- Michael Saylor’s Strategy offers a new perpetual preferred stock to raise funds to purchase more Bitcoin.
- Named Series A Perpetual Stride Preferred Stock (STRD), the stock will have 2,500,000 shares.
- The firm intends to sell $250 million worth of STRD shares to institutional investors and chosen individuals.
- With an additional $250 million purchase, Strategy will have around 583K Bitcoin in its treasury.
Michael Saylor’s Strategy, recently rebranded from MicroStrategy, announced the launch of an IPO (Initial Public Offering) of perpetual preferred stock to raise $250 million that will be used to fund more Bitcoin purchases.
Named “Series A Perpetual Stride Preferred Stock” with the ticker STRD, it will have 2.5 million shares, each valued at $100. Also, STRD holders will receive 10% non-cumulative quarterly dividends each year, beginning from September 30, 2025.
This announcement arrives amidst the Strategy’s purchase of an additional 705 BTC, which enhanced its holdings to 580,955 BTC (approximately $60 billion). The purchase was done by selling $75 million worth of shares of its STRK and STRF preferred stocks.
Strategy Aims to Increase Bitcoin Holdings to 583K
At the current market price of Bitcoin, $250 million worth of STRD will allow Strategy to buy 2352 BTC, which will increase its holdings to 583K BTC. The previous STRK and STRF stocks were sold at an approximate value of $75 million to purchase BTC.
An additional $250 million accumulation will reinforce Strategy’s position as the biggest corporate holder of Bitcoin.
Strategy’s strategic accumulation of Bitcoin is accompanied by AI-powered enterprise analytics software that helps investors to understand the market condition deeply and plan their long-term value creation accordingly.
Strategy’s Non-Cumulative Stock Will Provide High Yield
Available for institutional investors and chosen non-institutional investors, the stock is backed by Barclays, Morgan Stanley, Moelis & Company, and TD Securities, who act as joint book-running managers.
Also, the Benchmark Company, AmeriVet Securities, Bancroft Capital, BTIG and Keefe, and Bruyette & Woods will act as the co-managers of the offering.
STRD’s regular dividends will be paid quarterly, precisely on March 31, June 30, September 30, and December 31 of each year. However, the Strategy has the full right to redeem the stocks if any tax events or unexpected issues occur.
Strategy’s STRD Stock Details
With $100 per share, Strategy intends to provide 2,500,000 shares of its STRD stock. More details of the product are given below.
- Stock Name: Series A Perpetual Stride Preferred Stock
- Ticker: STRD
- No. of Shares: 2,500,000 Shares
- Initial Price: $100
- Dividend Rate: 10% Per Annum
- Dividend Frequency: Quarterly
- First Dividend Date: 30th September 2025
You May Also Like: Pectra Upgrade Leaves Ethereum Users at Risk of Automated Attacks, Wintermute Analysis Concludes
About Strategy
Founded in 1989, Strategy, previously known as Microstrategy, is a U.S.-based public company that provides business intelligence (BI), mobile software, and cloud-based services.
Since 2020, it has been involved in building a private Bitcoin treasury and has become the world’s first and largest Bitcoin Treasury Company. Michael Saylor acts as the executive chairman, and Phong Le as the president and CEO.