Bitcoin News Today: Strategy Issues 5 Million Perpetual Preferred Shares for Bitcoin Accumulation

Strategy, a pioneer in corporate bitcoin treasury management, has unveiled its fourth offering of perpetual preferred shares. The company aims to raise funds for general corporate purposes, including the acquisition of bitcoin and working capital. The plan involves issuing 5 million shares of its Variable Rate Series A Perpetual Stretch Preferred Stock, referred to as STRC stock. This initiative is part of Strategy's overarching strategy to accumulate bitcoin and foster corporate growth.

The STRC shares will accumulate cumulative dividends at a variable rate per annum on the stated amount of $100 per share. Regular dividends on STRC will be payable monthly in arrears, beginning on August 31, with an initial monthly dividend rate of 9% per annum. These dividends will be declared by Strategy’s board of directors or any duly authorized committee thereof, out of funds legally available for their payment.

Perpetual preferred shares, such as STRC, do not have a maturity date but offer fixed dividend payments for as long as the company continues to operate. This type of security provides investors with a steady income stream while also offering potential for price appreciation. Strategy has previously issued other preferred shares, including Strike (STRK) with an 8% fixed dividend, Strife (STRF) with a 10% fixed cumulative dividend, and Stride (STRD) with a 10% non-cumulative annual dividend.

Strategy's latest offering is part of its "42/42" plan, which targets a total capital raise of $84 billion in equity offerings and convertible notes for bitcoin acquisitions through 2027. This plan underscores the company's commitment to leveraging bitcoin as a key component of its treasury strategy. Earlier on the same day, Strategy announced the acquisition of 6,220 bitcoin for $739.8 million, bringing its total holdings to 607,770 BTC. This significant investment highlights the company's aggressive approach to accumulating bitcoin and its belief in the cryptocurrency's long-term value.

The issuance of STRC shares is expected to provide Strategy with the necessary capital to continue its bitcoin accumulation strategy while also supporting its overall corporate growth. By offering preferred shares with variable dividend rates, the company aims to attract investors seeking both income and potential capital appreciation. This strategy aligns with Strategy's broader goal of integrating bitcoin into its corporate treasury and leveraging the cryptocurrency's potential for long-term growth.