Strategy Offers 10% Yield Preferred Stock to Raise $979.7 Million for Bitcoin Acquisition

Strategy, the largest corporate holder of bitcoin, has announced a new preferred stock offering designed to provide long-term investors with a fixed 10% annual return without any management fees. The firm plans to sell 11.76 million shares of its 10% Series A Perpetual Stride Preferred Stock (STRD), aiming to raise approximately $979.7 million after accounting for fees and expenses.

The shares, which will be settled on June 10, are positioned below Strategy’s other preferred offerings, STRF and STRK. Unlike STRF, which has senior status and lower volatility, and STRK, which is convertible and pays 8%, STRD offers the highest yield among Strategy’s capital products but comes with higher risk. The shares feature a non-cumulative dividend, meaning missed payments will not accrue, and dividends will only be paid when declared by the board.

STRD is tailored to attract investors seeking high-yield options. The shares are non-callable under normal conditions, with redemption clauses only applicable under certain tax events or structural changes within the company. Strategy intends to use the proceeds from this offering for general corporate purposes, including the acquisition of additional bitcoin.

This move by Strategy underscores the company's commitment to leveraging its financial resources to accumulate more bitcoin, further solidifying its position as a leading corporate holder of the cryptocurrency. The offering not only provides a new investment avenue for high-yield seekers but also aligns with Strategy's long-term strategy of integrating bitcoin into its corporate treasury.