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Strategy Announces Proposed IPO of STRD Stock to Buy More Bitcoin

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On June 2, Strategy announced that it plans to offer an IPO of “10% Series A Perpetual Stride Preferred Stock” at $100 per share under the ticker STRD.

It intends to use the net proceeds from the offering for “general corporate purposes, including the acquisition of Bitcoin and for working capital,” it stated.

The firm is enabling preferred stock options to “institutional investors and select non-institutional investors,” said Saylor.

Preferred Stock Offering

There will be a 10% annual dividend rate, but payments are not mandatory, and dividends are non-cumulative. Dividends will be paid quarterly, and the first payment will be on September 30, 2025.

Strategy retains the right to redeem all 2.5 million shares if less than 25% remain outstanding, and it can also redeem if certain tax events occur, it stated.

This preferred stock offering gives the firm more capital to buy more Bitcoin while offering investors a potential 10% dividend. However, the dividends aren’t guaranteed, and the company can skip them without penalty.

Additionally, there is an adjustable liquidation preference, which is an unusual feature designed to protect investors if the stock price rises significantly after issuance.

Moreover, the involvement of major investment banks such as Barclays, Morgan Stanley, and TD Securities, as underwriters, suggests this is a substantial fundraising effort.

“Our treasury strategy is designed to provide investors with varying degrees of economic exposure to Bitcoin by offering a range of securities, including equity and fixed income instruments,” the firm stated in the prospectus.

Strategy Buys More BTC

On June 2, Strategy announced that it had purchased a further 705 BTC, worth $75.1 million, at around $106,495 per BTC. The firm has been making regular purchases following Michael Saylor’s tweeting a screenshot from his portfolio tracker.

The latest Bitcoin buy brings its treasury to 580,955 BTC or almost 3% of the circulating supply. The huge stash is worth $61.46 billion at current market prices and has an unrealized profit of 51% or $20.7 billion and a dollar cost average purchase price of $70,000 per BTC.

The firm’s class A stock (MSTR) gained a little on the day to reach $372 in after-hours trading, according to Google Finance. Shares in the company are up 28.5% year-to-date.

Bitcoin had gained marginally on the day to top $106,000 during the Tuesday morning Asian trading session.

Příspěvek Strategy Announces Proposed IPO of STRD Stock to Buy More Bitcoin se objevil jako první na CryptoPotato.


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