Strategy Announces STRD Stock IPO
Strategy (Nasdaq: MSTR; STRK; STRF) today announced plans to conduct an initial public offering of 2,500,000 shares of its 10.00% Series A Perpetual Stride Preferred Stock (STRD). The company stated that net proceeds from the offering will be used for general corporate purposes, including the acquisition of bitcoin and for working capital.
Dividend and Redemption Terms of STRD Shares
The STRD shares offer non-cumulative cash dividends at an annual rate of 10%, paid quarterly in arrears on March 31, June 30, September 30, and December 31 each year, beginning September 30, 2025. If dividends are not declared, they will not accumulate, and the company is not required to make up for missed payments. Strategy may redeem all outstanding STRD shares if the total number falls below 25% of the original issuance or if certain tax events occur. Holders will receive the liquidation preference of $100 per share plus any declared and unpaid dividends. In the event of a fundamental change, holders have the right to require Strategy to repurchase some or all of their shares at a cash repurchase price equal to the stated amount plus declared and unpaid regular dividends, if any, accrued to (but excluding) the fundamental change repurchase date.
Strategy Acquires 705 Additional Bitcoin
On the same day, Strategy (MSTR) acquired another 705 Bitcoin for about $75 million, further expanding its position as the largest corporate holder of Bitcoin. 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 total holdings to 580,955 BTC. The acquisition was funded by selling 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.
Bitcoin Holdings and Average Cost Update
With this purchase, Strategy’s average acquisition price across all its Bitcoin holdings stands at $70,023 per coin. The company continues to lead corporate adoption of Bitcoin treasury strategies as more public companies follow suit.