Strategy Launches 2.5 Million Share IPO for Bitcoin Purchase

Strategy, a well-known enterprise analytics software company, has declared its intention to launch an initial public offering (IPO) of 2.5 million shares of its Series A Perpetual Stride Preferred Stock, commonly referred to as STRD Stock. The primary goal of this offering is to secure funds for general corporate purposes, with a substantial allocation dedicated to the purchase of Bitcoin and the enhancement of working capital. The STRD Stock will provide a 10% dividend rate, paid quarterly in arrears, commencing from September 30, 2025. It is crucial to note that these dividends are non-cumulative and will only be distributed if declared by the company's board of directors.

The IPO is being overseen by several prominent financial institutions, including Barclays, Morgan Stanley, Moelis & Company, and TD Securities, who are serving as joint book-running managers. Additional co-managers for the offering include The Benchmark Company, AmeriVet Securities, Bancroft Capital, BTIG, and Keefe, Bruyette & Woods. The IPO is being conducted under an effective shelf registration statement filed with the Securities and Exchange Commission (SEC).

Strategy is recognized for its adoption of Bitcoin as its primary treasury reserve asset, aiming to strategically accumulate Bitcoin through proceeds from equity and debt financings, as well as operational cash flows. The company's treasury strategy is designed to offer investors varying degrees of economic exposure to Bitcoin through a range of securities, including equity and fixed-income instruments. In addition to its Bitcoin holdings, Strategy provides industry-leading AI-powered enterprise analytics software, advancing its vision of "Intelligence Everywhere."

The liquidation preference of the STRD Stock will initially be set at $100 per share, with adjustments made based on market conditions. Strategy has the right to redeem all or some of the STRD Stock under certain conditions, including if the total number of outstanding shares falls below 25% of the originally issued shares or if specific tax events occur. Holders of the STRD Stock will also have the right to require the company to repurchase their shares at a specified price in the event of a fundamental change.

This IPO is part of Strategy's broader strategy to raise funds for general corporate purposes, including the acquisition of Bitcoin and strengthening its working capital. The company's focus on Bitcoin as a treasury reserve asset, combined with its technological innovation and operational excellence, positions it as a leader in both the digital asset and enterprise analytics sectors. The successful completion of this offering will further enhance Strategy's ability to create long-term value for its investors.