Strategy (Nasdaq: MSTR, STRK, STRF) has priced its initial public offering of 11.76 million shares of its 10.00% Series A Perpetual Stride Preferred Stock, known as STRD Stock, at $85 per share. The company expects the offering to close on June 10, subject to customary conditions.
The STRD Stock IPO is projected to generate approximately $979.7 million in net proceeds, after deducting underwriting discounts and offering expenses.
Strategy stated that the capital raised will be used for general corporate purposes, including the acquisition of bitcoin and to bolster working capital. This move continues the company’s aggressive bet on digital assets.
The STRD Stock offers non-cumulative quarterly dividends at an annual rate of 10.00%, paid only when declared by Strategy’s board. The first dividend payment is scheduled for September 30, 2025.
Since the dividends are non-cumulative, any missed payments will not accrue or be owed in the future, a feature that differentiates it from traditional preferred stock.
Investors will be able to redeem their STRD Stock under certain conditions. Strategy retains the right to redeem all outstanding shares if the total number drops below 25% of the originally issued amount, or if specific tax-related events occur.
In the event of a “fundamental change,” such as a corporate restructuring, investors will also have the right to require Strategy to repurchase their shares.
The liquidation preference for STRD Stock begins at $100 per share and will adjust daily based on market activity. The adjusted liquidation value will be the highest of the original $100, the most recent sale price from a trading day prior, or the average of the past ten trading days.
Barclays, Morgan Stanley, Moelis & Company, and TD Securities are acting as joint bookrunners for the offering. Benchmark, Clear Street, AmeriVet Securities, Bancroft Capital, Keefe, Bruyette & Woods, and BTIG are serving as co-managers.
The offering is being conducted under an effective shelf registration filed with the U.S. Securities and Exchange Commission. Official copies of the prospectus supplement are available through the SEC website or by contacting the underwriting firms directly.
The STRD Stock IPO is one of the more anticipated preferred stock listings of the year, drawing interest from both yield-focused investors and those watching Strategy’s continued alignment with bitcoin.
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