Strategy Launches Preferred Stock to Fund Bitcoin Purchases
Strategy (MSTR) announced a new funding method through Perpetual Strife Preferred Stock (STRF) aimed at facilitating additional bitcoin (BTC) purchases. Key details include:
- STRF provides a 10% annual cash dividend, paid quarterly, compounding at 1% if unpaid, with a cap of 18%.
- The first dividend payment is set for June 30, 2025.
- The previous preferred series (STRK) offered an 8% interest rate.
- STRF holders have no voting rights but enjoy priority in liquidation, with a $100 per share preference.
- STRF is expected to trade on Nasdaq within 30 days of issuance.
- The offering is managed by Morgan Stanley, Barclays, Citigroup, and Moelis & Company.
Recent fundraising efforts show a slowdown, with only 130 BTC purchased for $10.7 million recently, bringing total holdings to 499,226 BTC. MSTR shares fell 5% amid broader market declines and bitcoin's price drop to $81,300 from $84,000.