Strategy Expands STRD Preferred Stock Deal to $980M Amid BTC Plans
Strategy has announced the pricing of its initial public offering of 11,764,700 shares of its 10.00% Series A Perpetual Stride Preferred Stock (STRD) at $85.00 per share, raising approximately $979.7 million in net proceeds.
The offering is expected to settle on June 10, 2025, subject to customary closing conditions.
Key Use of Proceeds: Bitcoin and Growth
According to the information, funds from the offering will be used for general corporate purposes, including strategic BTC acquisitions and working capital expansion, reinforcing Strategy’s alignment with the digital asset sector.
Dividend and Liquidity Terms
- Dividend Rate: 10.00% per annum, non-cumulative
- Payment Frequency: Quarterly, starting September 30, 2025
- Dividends Payable: Only when declared by the board; unpaid dividends do not accrue
- Payment Method: Cash only, as outlined in the prospectus supplement
Redemption and Repurchase Provisions
Strategy reserves the right to redeem all shares at its discretion if total outstanding STRD stock falls below 25% of originally issued shares.
Redemption can also occur upon certain tax events.
A “fundamental change” (as defined in the certificate of designations) will trigger a repurchase right for holders.
Dynamic Liquidation Preference
Each STRD share’s liquidation preference starts at $100, with adjustments based on:
- The original stated amount,
- Recent market sale prices,
- A 10-day average of closing prices.
This mechanism ensures the value of outstanding STRD shares aligns with market activity and investor protection.
Underwriting Syndicate
- Joint Bookrunners: Barclays, Morgan Stanley, Moelis & Company, TD Securities
- Co-Managers: The Benchmark Company, Clear Street, AmeriVet Securities, Bancroft Capital, Keefe, Bruyette & Woods, BTIG
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