Strategy announced an initial public offering (IPO) of 2.5 million shares of its STRD preferred stock on June 2, 2025. The company plans to use the funds raised for general corporate purposes, including acquiring additional Bitcoin and working capital. The STRD shares will carry an annual dividend rate of 10%,

• Strategy’s STRD preferred stock IPO aims to raise $250 million, supporting Bitcoin acquisitions and general corporate needs.
• The offering includes a 10% non-cumulative dividend and redemption rights tied to outstanding shares and tax changes.

Strategy announced an initial public offering (IPO) of 2.5 million shares of its STRD preferred stock on June 2, 2025. The company plans to use the funds raised for general corporate purposes, including acquiring additional Bitcoin and working capital. The STRD shares will carry an annual dividend rate of 10%, paid quarterly, but dividends are non-cumulative and depend on the company’s discretion and available funds.

STRD Stock Details and Dividend Terms

Each STRD preferred stock share will be priced at $100, with the value subject to daily adjustment based on market activity and recent trading averages. Strategy will pay dividends only if declared by its board, and unpaid dividends will not accumulate. Dividends will begin quarterly payments on September 30, 2025, if declared.

Strategy has set conditions for redeeming STRD shares. The company can redeem all shares if the outstanding amount falls below 25% of the initial offering or if tax law changes affect the shares. Upon redemption, shareholders will receive the original share value plus any declared but unpaid dividends.

In cases of a “fundamental change” within the company, investors may demand a buyback of their shares. The repurchase price will include the base value of the shares and any declared dividends not yet paid.

Major Financial Firms Lead the IPO

The IPO is managed by several major financial institutions, including Barclays, Morgan Stanley, Moelis & Company, and TD Securities as joint book-running managers. Additional co-managers include The Benchmark Company, AmeriVet Securities, Bancroft Capital, BTIG, and Keefe, Bruyette & Woods.

Strategy filed the registration statement with the U.S. Securities and Exchange Commission (SEC), and the offering will proceed only if market conditions are favorable.

Strategy’s Bitcoin Holdings and Financial Position

Strategy holds the largest publicly reported Bitcoin reserve, currently at 580,955 BTC valued at over $61 billion. The company recently purchased $75.1 million worth of Bitcoin, reinforcing its long-term approach to holding Bitcoin as a key asset.

According to the Saylor Tracker, the company has accumulated more than $20.55 billion in unrealized gains from its Bitcoin investments. Strategy defines Bitcoin as “digital capital” and continues to raise funds through securities offerings to finance additional purchases.

The STRD offering follows other institutional efforts to merge traditional finance and crypto assets. This IPO presents a new investment option focused on Bitcoin through preferred stock, targeting institutional investors and select non-institutional buyers.

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