Strategy plans $250 million preferred stock sale to buy Bitcoin

Strategy, formerly known as MicroStrategy, announced plans to raise $250 million through an initial public offering of a new class of perpetual preferred stock.

The company intends to issue 2.5 million shares of its 10% Series A Perpetual Stride Preferred Stock, ticker symbol STRD, priced at $100 per share, according to a statement released on June 2.

Proceeds from this offering will be used to acquire additional Bitcoin (CRYPTO:BTC) and provide working capital.

Perpetual preferred stocks typically pay fixed dividends indefinitely and have priority over common stock in payouts, but they have no maturity date.

The offering will be available to institutional investors and select non-institutional investors.

This move introduces a new fundraising tool for Strategy to finance Bitcoin purchases, which have previously been funded through issuing common stock and convertible notes.

Strategy holds 580,955 Bitcoin, valued at over $61.7 billion, making it the largest corporate Bitcoin holder globally, according to the company’s website.

Data from BitcoinTreasuries.NET indicates that Strategy’s Bitcoin holdings exceed the combined total of 117 other publicly traded Bitcoin-holding companies.

Michael Saylor, Strategy’s Executive Chairman and co-founder, has been the primary architect of the company’s Bitcoin investment strategy.

Holders of STRD shares are eligible for a 10% annual dividend paid in cash, but dividends are non-cumulative and only paid if declared by Strategy’s board or authorised committee.

Dividends, if declared, will be paid quarterly starting September 30, 2025.

Strategy has the option to redeem all outstanding STRD shares for cash under certain conditions, including if fewer than 25% of shares remain or if a fundamental change occurs.

The repurchase price includes the $100 liquidation preference plus any declared but unpaid dividends.

Barclays, Morgan Stanley, Moelis & Company, and TD Securities will manage the sale, supported by investment firms including The Benchmark Company and AmeriVet Securities.

At the time of reporting, the Bitcoin (BTC) price was $105,353.