Today, Strategy (Nasdaq: MSTR; STRK; STRF) has announced that it plans to conduct an initial public offering of 2,500,000 STRD shares of Strategy’s 10.00% Series A Perpetual Stride Preferred Stock.
“Strategy intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin and for working capital,“ stated the company in the announcement.
The STRD Stock will offer non-cumulative cash dividends at an annual rate of 10 percent, paid quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, beginning on September 30, 2025. If dividends are not declared, they will not accumulate, and Strategy says it is not required to make up for missed payments.
Strategy may be able to redeem all outstanding STRD shares if the total number falls below 25 percent of the original issuance or if certain tax events occur. In such cases, holders will receive the liquidation preference of $100 per share plus any declared and unpaid dividends.
The company stated, “if an event that constitutes a “fundamental change” under the certificate of designations governing the STRD Stock occurs, then, holders of the STRD Stock will have the right to require Strategy to repurchase some or all of their shares of STRD Stock at a cash repurchase price equal 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 excluding the fundamental change repurchase date.”
Also today, Strategy (MSTR) acquired another 705 Bitcoin for about $75 million, further expanding its position as the largest corporate holder of Bitcoin as more public companies continue to adopt Bitcoin treasury strategies.
According to their SEC filing on June 2, they bought Bitcoin at an average price of $106,495 each between May 26 and June 1, bringing their total holdings to 580,955 BTC. The acquisition was funded by selling some of their preferred shares through an at-the-market (ATM) equity offering.
The company raised $74.6 million by selling a combination of its preferred stock classes, including 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 purchase, Strategy’s average acquisition price across all its Bitcoin holdings stands at $70,023 per coin.
michael-saylors-strategy-announces-initial-public-offering-of-2500000-strd-shares
Leave a Reply