Strategy, the company formerly known as Microstrategy, has announced plans to launch an initial public offering of 2.5 million shares of its 10.00% Series A Perpetual Stride Preferred Stock, trading under the name STRD. According to the company’s disclosure, the offering is being made under the U.S. Securities Act of 1933, and the net proceeds are intended for general corporate purposes, including the acquisition of bitcoin and working capital. The move reinforces Strategy’s long-running approach of tapping capital markets to expand its bitcoin treasury.
How the STRD Offering Is Structured
The new preferred stock comes with an annual dividend rate of 10.00%, but the dividend is not mandatory. Strategy said dividends will only be paid if declared by the company’s board, and any payments, if approved, will be made in cash on a quarterly basis beginning September 30, 2025. The company also clarified that unpaid dividends will not accumulate, meaning investors will not be compensated for periods in which the board chooses not to declare a payout.
Strategy also described the circumstances under which the preferred shares could be redeemed. The company may redeem the stock if less than 25% of the initially issued shares remain outstanding or if certain tax-related events occur. In the event of a fundamental change, holders will have the right to require the company to repurchase their shares at the stated value of $100 per share, plus any declared and unpaid dividends. The liquidation preference will be at least the stated $100 amount, although it may be adjusted based on recent trading performance.
Fresh Capital Continues to Flow Into Bitcoin
Alongside the STRD IPO announcement, Strategy provided an update on its recent fundraising activity and bitcoin purchases in a Form 8-K filing with the U.S. Securities and Exchange Commission. The company reported that between May 26 and June 1, it raised $36.2 million by selling 353,511 shares of STRK and another $38.4 million through the sale of 374,968 shares of STRF.
The combined proceeds were used to acquire 705 BTC at an average purchase price of $106,495 per bitcoin. Following that latest purchase, Strategy’s total bitcoin holdings climbed to 580,955 BTC. The company said those holdings were accumulated at a total cost of approximately $40.68 billion, implying an average acquisition price of about $70,023 per bitcoin.
A Continued Treasury-Driven Bitcoin Strategy
The announcement highlights how Strategy is continuing to build a multi-instrument financing framework around its bitcoin accumulation model. Rather than relying on a single source of funding, the company is using different securities programs, including STRK, STRF, and now the proposed STRD preferred stock, to support ongoing balance sheet expansion and bitcoin purchases.
While the company characterized the use of proceeds broadly as general corporate purposes, its filing made clear that bitcoin acquisition remains a central objective. That is consistent with Strategy’s broader identity in public markets, where it has increasingly positioned itself not only as a software and intelligence company but also as one of the largest corporate holders of bitcoin.
For investors, the STRD structure presents a high-yield preferred instrument with a stated dividend rate, but with an important caveat: the payout depends entirely on board declaration and does not accumulate if skipped. That feature may appeal to some income-focused buyers while also preserving flexibility for the company as it continues to prioritize capital deployment and treasury management.
At the same time, the latest 705 BTC purchase shows that Strategy is still actively converting newly raised capital into bitcoin even at six-figure purchase levels. With total holdings now nearing 581,000 BTC, the company remains one of the most prominent examples of a publicly traded firm using equity-linked financing and preferred stock structures to increase exposure to the digital asset.
The proposed STRD IPO therefore represents more than a standalone financing event. It signals that Strategy is continuing to refine and expand the financial architecture behind its bitcoin accumulation strategy, using market instruments to sustain purchases, manage liquidity, and maintain its leadership position among corporate bitcoin holders.