Strategy Launches High-Yield STRD Preferred Stock to Raise $980M for Bitcoin Acquisition
Strategy (MSTR), the largest corporate holder of bitcoin, has priced a new preferred stock offering designed to attract long-term investors with a 10% fixed annual return and no management fees.
The company will issue 11.76 million shares of its 10% Series A Perpetual Stride Preferred Stock (STRD), aiming to raise approximately $979.7 million after deducting fees and expenses, according to a press release. The shares are expected to settle on June 10.
Key Features of STRD
- 10% Fixed Yield: Offers the highest return among Strategy’s preferred stock products.
- No Management Fees: Tailored to appeal to income-focused, long-term investors.
- Non-Cumulative Dividend: Dividends are paid only when declared by the board and do not accrue if missed.
- Junior Ranking: STRD ranks below Strategy’s other preferred offerings — STRF (senior, lower risk) and STRK (convertible, 8% yield).
- Limited Callability: STRD is non-callable under ordinary circumstances; redemption is only triggered under specific tax or corporate restructuring events.
This new issuance comes as part of Strategy’s broader effort to deepen its bitcoin holdings. Proceeds will be used for general corporate purposes, including additional BTC acquisitions, reaffirming the firm’s conviction in the long-term value of the cryptocurrency.
In pre-market trading, Strategy shares were up 1.7%, trading at $375, reflecting investor optimism around the capital raise and its intended use.
