Strategy Launches $979.7 Million Preferred Stock Offering for Bitcoin Acquisition
Strategy (MSTR), the largest corporate holder of bitcoin, has launched a new preferred stock offering aimed at long-term investors, providing a fixed 10% annual return without management fees.
- The company plans to sell 11.76 million shares of its Series A Perpetual Stride Preferred Stock (STRD).
- Expected proceeds are approximately $979.7 million after expenses.
- Shares will settle on June 10.
- STRD offers the highest yield among Strategy’s offerings but is riskier than STRF and STRK.
- It features a non-cumulative dividend structure; missed payments do not accrue.
- Proceeds will be used for general corporate purposes, including acquiring more bitcoin.
- MSTR shares have increased by 1.7% in pre-market trading, reaching $375.