Strategy, formerly MicroStrategy, plans to raise $250 million through an initial public offering of a new class of perpetual preferred stock so it can fund more Bitcoin purchases.
Strategy intends to issue 2.5 million shares of its 10% Series A Perpetual Stride Preferred Stock, with the ticker STRD, at $100 a share, the Bitcoin-stacking firm said in a June 2 statement.
Proceeds from the offering will be used to acquire additional Bitcoin (BTC) and provide working capital, it added.
Perpetual preferred stocks often pay fixed dividends indefinitely, with no maturity date and typically have priority over common stock in payouts.
Strategy’s perpetual preferred stock offering will be available to institutional investors and selective non-institutional investors.
The offering would add a new fundraising tool for Strategy to fund its Bitcoin purchases, which have primarily been facilitated through issuing common stock and convertible notes.
Strategy is by far the world’s largest corporate Bitcoin holder, with 580,955 Bitcoin — worth over $61.7 billion — on its balance sheet, according to its website.
BitcoinTreasuries.NET data shows that Strategy’s Bitcoin holdings are more than double that of the other 117 publicly traded Bitcoin-holding companies combined.
The $250 million could allow Strategy to purchase another 2,351.8 Bitcoin at current market prices, with Bitcoin trading at $106,325.
Strategy’s Executive Chairman and co-founder, Michael Saylor, has been the main orchestrator behind the company’s Bitcoin investment strategy.
STRD holders aren’t guaranteed dividends
STRD holders are eligible to receive 10% annual dividends in cash, but only if declared by Strategy’s board or an authorized committee.
The dividends are non-cumulative, meaning unpaid amounts don’t carry over to future periods.
If declared, STRD dividends would be paid out on the last day of each financial quarter, starting Sept. 30, 2025.
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Strategy can redeem all outstanding STRD shares for cash if less than 25% remain from the total originally issued. If a “fundamental change” occurs, STRD holders can require Strategy to repurchase their shares for cash. In both cases, the repurchase price includes the $100 liquidation preference plus any declared dividends that haven’t been paid.
Wall Street banks Barclays, Morgan Stanley, Moelis & Company and TD Securities will manage the sale of STRD, while several investment firms, including The Benchmark Company and AmeriVet Securities, will support the offering.
The offering is being conducted under an effective shelf registration statement filed with the US Securities and Exchange Commission.
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