Strategy Unveils $980M STRD Preferred Equity Raise to Bolster Bitcoin Reserves
Strategy (MSTR), the world’s largest corporate holder of Bitcoin, has priced a new offering of preferred stock designed to attract long-term capital with compelling yield and zero management fees. The company will issue 11.76 million shares of its 10% Series A Perpetual Stride Preferred Stock (STRD), with estimated net proceeds of $979.7 million after costs.
Settlement is expected on June 10, the company said in a statement.
Offering Highlights
- Fixed Yield: STRD delivers a 10% annual dividend, the highest among Strategy’s capital products.
- Fee-Free Structure: No management or performance fees are applied, aligning with passive income strategies.
- Risk Profile: STRD ranks junior to existing offerings STRF (senior, low-risk) and STRK (8% convertible), making it a higher-yield, higher-risk vehicle.
- Dividend Terms: Distributions are non-cumulative, and payment is subject to board approval.
- Redemption Limitations: Shares are non-callable under typical conditions; early redemption may occur only in response to tax or structural changes.
Use of Proceeds
Strategy stated that proceeds will be directed toward general corporate purposes, with a continued emphasis on expanding its Bitcoin treasury — a move consistent with its long-standing thesis on BTC as a reserve asset.
In early trading, Strategy’s shares gained 1.7%, reaching $375, as investors responded positively to the yield-driven capital raise and its crypto-linked growth strategy.
