Michael Saylor’s Strategy Announces Initial Public Offering Of 2,500,000 STRD Shares

Strategy Announces Initial Public Offering of STRD Stock

Strategy (Nasdaq: MSTR; STRK; STRF) has recently made an exciting announcement regarding its upcoming initial public offering. The company plans to offer 2,500,000 shares of its 10.00% Series A Perpetual Stride Preferred Stock, known as STRD shares. This move is aimed at raising capital for general corporate purposes, including the acquisition of bitcoin and working capital.

Key Details of the STRD Stock Offering

The STRD Stock will provide non-cumulative cash dividends at an annual rate of 10 percent, paid quarterly in arrears. The dividends will be distributed on March 31, June 30, September 30, and December 31 of each year, starting from September 30, 2025. In case dividends are not declared, they will not accumulate, and Strategy is not obligated to make up for missed payments.

Strategy also has the option to redeem all outstanding STRD shares if the total number falls below 25 percent of the original issuance or in certain tax events. In such scenarios, holders will receive the liquidation preference of $100 per share plus any declared and unpaid dividends.

Redemption and Repurchase Rights

If a “fundamental change” event occurs as defined in the certificate of designations governing the STRD Stock, holders will have the right to require Strategy to repurchase some or all of their shares at a cash repurchase price equal to the stated amount of the STRD Stock plus any accrued dividends.

Expansion of Bitcoin Holdings

Strategy also made a significant move by acquiring an additional 705 Bitcoin for approximately $75 million. This acquisition further solidifies the company’s position as the largest corporate holder of Bitcoin, as more public companies are embracing Bitcoin treasury strategies.

According to their recent SEC filing, Strategy purchased Bitcoin at an average price of $106,495 per coin between May 26 and June 1. This acquisition was funded by selling preferred shares through an at-the-market equity offering, raising $74.6 million. The company sold a combination of STRK and STRF preferred stock, totaling 728,479 shares.

With this latest purchase, Strategy now holds a total of 580,955 BTC, with an average acquisition price of $70,023 per coin across all its Bitcoin holdings.