Michael Saylor’s Strategy Rolls Out $250M STRD Stock to Deepen Bitcoin Bet

Strategy, formerly known as MicroStrategy, announced on June 2 its intention to conduct an initial public offering (IPO) of 2.5 million shares of its 10.00% Series A Perpetual Stride Preferred Stock, designated as STRD. Priced at $100 per share, the offering aims to raise $250 million, with proceeds earmarked for general corporate purposes, including the acquisition of Bitcoin and working capital.

In an official post on X, Strategy confirmed the launch of its STRD preferred stock offering, highlighting its availability to institutional and select non-institutional investors.

The STRD shares are structured to pay non-cumulative cash dividends at an annual rate of 10.00%, subject to declaration by Strategy's board of directors. If declared, dividends will be payable quarterly in arrears on March 31, June 30, September 30, and December 31 of each year, commencing on June 30, 2025. Importantly, if a dividend is not declared for a given period, it will not accumulate, and Strategy will have no obligation to pay it in the future.

The company retains the right to redeem all outstanding STRD shares for cash if the total number of shares falls below 25% of the original issuance or if certain tax events occur. In such cases, holders will receive the liquidation preference of $100 per share plus any declared and unpaid dividends. Additionally, if a "fundamental change" occurs, as defined in the certificate of designations governing the STRD Stock, holders may require Strategy to repurchase their shares at the stated amount plus any declared and unpaid dividends.

This offering represents Strategy's continued commitment to its Bitcoin acquisition strategy. The company is recognized as the largest corporate holder of Bitcoin, with 580,955 BTC—valued at over $61.7 billion—on its balance sheet. The $250 million raised through the STRD offering could enable the purchase of approximately 2,351.8 Bitcoins at current market prices, with Bitcoin trading at $106,325.

The STRD shares are non-convertible and designed to appeal to income-focused investors seeking exposure to Strategy's Bitcoin-centric business model without the volatility of common stock. This follows previous offerings, such as the STRK preferred shares, which are convertible and carry an 8% annual dividend.

Morgan Stanley & Co. LLC, Barclays Capital Inc., Citigroup Global Markets Inc., and Moelis & Company LLC are acting as joint book-running managers for the STRD offering. The shares are expected to be listed on the Nasdaq under the ticker symbol STRD. Investors should consult their brokerage platforms, such as Fidelity Investments, to confirm availability.

Strategy's aggressive capital-raising initiatives underscore its unwavering belief in Bitcoin's long-term value proposition. By leveraging preferred stock offerings like STRD, the company aims to bolster its Bitcoin holdings while providing investors with structured income opportunities.