Strategy Announces $250 Million STRD IPO for Bitcoin Purchases with 10% Dividends

• Strategy aims to raise $250 million via STRD preferred stock IPO to support Bitcoin acquisitions and corporate needs.
• STRD shares offer a 10% non-cumulative annual dividend, with redemption rights tied to share count and tax changes.
• Strategy holds over 580,000 BTC valued at $61 billion, using IPO proceeds to expand its Bitcoin holdings further.

Strategy launched an initial public offering (IPO) of its STRD preferred stock on June 2, 2025. The company plans to raise $250 million through this offering. The funds will support general corporate needs, including acquiring additional Bitcoin. The IPO introduces a preferred stock carrying a 10% annual dividend, paid quarterly, with redemption provisions.

STRD Preferred Stock Offering Details

Strategy is offering 2.5 million shares of STRD preferred stock, each priced at $100. The share price may adjust daily, reflecting recent market activity and trading averages. The dividends on these shares are non-cumulative, meaning unpaid dividends do not accumulate and depend on the company’s discretion. The first potential dividend payment will be made on September 30, 2025, if declared by the board.

The company established specific conditions for redeeming STRD shares. Redemption can occur if outstanding shares fall below 25% of the initial offering or if relevant tax law changes impact the shares. In these cases, shareholders receive the original share value plus any declared but unpaid dividends.

Investor Protections and Buyback Rights

Investors can demand that the company repurchase their shares if a “fundamental change” occurs within Strategy. The buyback price will include the original share value and any declared dividends not yet paid. This provides a level of protection for shareholders in case of influential company events.

Among the key financial companies leading the IPO are Barclays, Morgan Stanley, Moelis & Company, and TD Securities, which serve as joint book-running managers. Other co-managers include The Benchmark Company, AmeriVet Securities, Bancroft Capital, BTIG, and Keefe, Bruyette & Woods. The enrollment statement has been filed with the U.S. Securities and Exchange Commission (SEC) while the offering will proceed only if market conditions are considered favorable.

Strategy’s Bitcoin Holdings and Financial Position

Strategy holds the largest publicly reported Bitcoin reserve, currently totaling 580,955 BTC. This Bitcoin reserve is valued at over $61 billion. The company recently made a purchase of $75.1 million worth of Bitcoin. Strategy’s approach is to treat Bitcoin as a form of digital capital and hold it long term.

The company has accumulated more than $20.55 billion in unrealized gains from its Bitcoin investments, according to the Saylor Tracker. It continues to raise capital through securities offerings, including the STRD IPO, to fund additional Bitcoin purchases.

The STRD preferred stock offering represents a bridge between traditional finance and cryptocurrency assets. It provides institutional investors and selected non-institutional buyers with a new option focused on Bitcoin exposure. This IPO follows recent trends of merging crypto assets with established financial markets.