Strategy Launches $1B High-Yield STRD Offering to Acquire More Bitcoin

Strategy has priced its new STRD preferred stock offering, aiming to raise nearly $1 billion to fund continued Bitcoin accumulation, while offering investors a fixed 10% annual return.

Preferred Stock Designed for Long-Term Investors

Through its Series A Perpetual Stride Preferred Stock (STRD), Strategy plans to sell 11.76 million shares at $85 per share, generating an estimated $979.7 million after deducting fees and expenses. The offering is tailored for long-term investors seeking high-yield options without the burden of management fees.

How STRD Differs from Strategy's Other Shares

STRD will rank below the company’s existing preferred shares STRF and STRK. While STRF is senior and less volatile, and STRK is convertible with an 8% return, STRD provides the highest yield though with added risk.

Notably, STRD pays non-cumulative dividends, meaning missed payments are not accrued and will only be issued when approved by the board.

Redemption and Structural Clauses

According to Strategy, STRD shares are non-callable under normal conditions. Redemption would only be triggered under specific tax-related events or significant structural changes within the company. This clause ensures a degree of security for yield-focused investors.

Funds Will Be Used to Buy More Bitcoin

Strategy already the largest corporate holder of Bitcoin said the capital raised through this offering will go towards general corporate purposes, including the purchase of additional Bitcoin.

This move demonstrates our continued commitment to Bitcoin as a strategic asset.

Strategy spokesperson

Shares of Strategy (MSTR) have risen 1.7% in pre-market trading to $375 following the announcement.

Conclusion

The STRD offering highlights Strategy’s aggressive stance on capital markets as it doubles down on Bitcoin investments. With a compelling 10% annual return, it could attract a new wave of yield-hungry investors eager to ride Bitcoin’s long-term growth trajectory.