- Strategy has announced the pricing for its initial public offering of 11,764,700 shares of its 10.00% Series A Perpetual Stride Preferred Stock.
- These shares are being offered to the public at $85.00 each, representing another step forward in the company’s plan to expand its Bitcoin holdings.
Strategy, formerly known as MicroStrategy, is doubling down on its Bitcoin (BTC) accumulation strategy. The company now holds 580,250 Bitcoins, valued at around $60.37 billion. Strategy acquired its BTC at a cost of $69,979 per coin on average. This has helped the Strategy to be the fourth-largest Bitcoin holder.
To support the company, Strategy announced it would offer 11,764,700 shares of a special type of stock called the 10.00% Series A Perpetual Stride Preferred Stock (STRD Stock) at a price of $85.00 per share. The sale is expected to officially close (or settle) on June 10, 2025, once all the usual conditions for the deal are met.
A number of players are helping to manage the offering. Barclays, Morgan Stanley, Moelis & Company, and TD Securities are serving as joint book-running managers, taking the lead in organizing and executing the deal. Meanwhile, The Benchmark Company, Clear Street, AmeriVet Securities, Bancroft Capital, Keefe, Bruyette & Woods, and BTIG are acting as co-managers, supporting the process and helping to ensure the offering runs smoothly.
After covering fees and other costs, Strategy expects to pocket roughly $979.7 million from the offering. The plan? To use this cash for general business needs, which include buying more Bitcoin and handling everyday expenses.
What About Dividends?
Here’s the scoop: owning STRD stock doesn’t mean you’re automatically getting dividend payments. The company’s board decides if and when dividends are declared. If declared, shareholders can expect a 10% annual dividend, paid quarterly starting September 30, 2025. But here’s the catch: these dividends are non-cumulative. That means if a dividend is skipped in one quarter, it doesn’t have to be made up later. In short, dividends come only when declared, and missed payments don’t pile up.
The reports reads”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 (and without payment of any undeclared regular dividends).”
Finally, the STRD Stock carries a liquidation preference. This means if the company were liquidated, STRD shareholders get paid before others.
The starting preference is $100 per share, but this isn’t set in stone. It can adjust daily and will always be the highest of: the original $100, the most recent sale price if shares traded recently, or the average sale price over the past 10 trading days. Today BTC is at $104,00, just 6.71% below its all-time high of $111,000 that we saw on May 22.
