Bitcoin-focused firm Strategy, formerly known as MicroStrategy, has announced plans to raise $250 million through the initial public offering of a new class of perpetual preferred stock, with proceeds earmarked for purchasing additional Bitcoin and providing working capital.
In a statement released on June 2, Strategy said it intends to issue 2.5 million shares of its 10% Series A Perpetual Stride Preferred Stock, trading under the ticker (STRD), at $100 per share. The offering is targeted at institutional investors and selected non-institutional participants.
Perpetual preferred stocks typically pay fixed dividends with no maturity date and have payment priority over common stock. However, holders of STRD are not guaranteed dividends, as payouts will only occur if declared by Strategy’s board or an authorized committee. These dividends are also non-cumulative, meaning missed payments will not accrue or be paid in future periods.
If declared, dividends would be distributed quarterly, starting on September 30, 2025. This offering marks a shift in Strategy’s capital-raising approach, supplementing its previous reliance on common stock sales and convertible notes to fund its aggressive Bitcoin acquisition strategy.
The $250 million raise could enable Strategy to purchase approximately 2,351.8 additional Bitcoin at the current market price of $106,325 per BTC. Strategy remains the largest corporate holder of Bitcoin globally, with 580,955 BTC valued at over $61.7 billion on its balance sheet, according to its website. Data from BitcoinTreasuries.NET shows that Strategy’s holdings exceed the combined Bitcoin reserves of the next 117 publicly traded firms.
Executive Chairman and co-founder Michael Saylor continues to spearhead the company’s Bitcoin strategy, positioning the asset as a long-term store of value.
Under the terms of the offering, Strategy may redeem all outstanding STRD shares for cash if fewer than 25% of the originally issued shares remain. Additionally, in the event of a “fundamental change,” STRD holders may require the company to repurchase their shares. In either case, the redemption price would include the $100 liquidation preference plus any declared but unpaid dividends.
Wall Street firms Barclays, Morgan Stanley, Moelis & Company, and TD Securities will lead the STRD offering, with additional support from The Benchmark Company, AmeriVet Securities, and other investment firms.
The offering is being conducted under a shelf registration statement that has been declared effective by the U.S. Securities and Exchange Commission.
