Strategy offers $250M preferred stock to stack more Bitcoin
Strategy plans to raise $250 million through an initial public offering of 2.5 million shares of its 10% Series A Perpetual Stride Preferred Stock, ticker STRD, priced at $100 per share. Proceeds will fund additional Bitcoin purchases and provide working capital. The perpetual preferred stocks will pay fixed dividends indefinitely, with priority over common stock in payouts. The offering targets institutional and selective non-institutional investors. Strategy holds 580,955 Bitcoin, valued over $61.7 billion, making it the largest corporate Bitcoin holder globally. The $250 million could allow for the purchase of approximately 2,351.8 Bitcoin at current prices. STRD holders may receive 10% annual dividends if declared, but these are non-cumulative. Strategy can redeem shares if less than 25% remain or if a fundamental change occurs, allowing repurchase at a specified price. The offering is managed by Barclays, Morgan Stanley, Moelis & Company, and TD Securities under an SEC registration statement.
