STRD Preferred Stock Offering Could Generate $1B for Strategic Bitcoin Accumulation

Strategy to Raise Nearly $980M Through STRD Preferred Stock Offering to Support Bitcoin Purchases

Strategy (MSTR), the largest corporate holder of Bitcoin (BTC), has announced the pricing of its new preferred stock offering, aimed at income-focused investors. The new product, 10% Series A Perpetual Stride Preferred Stock (STRD), offers a fixed 10% annual return with no management fees.

The company plans to issue 11.76 million shares, with expected net proceeds of approximately $979.7 million after fees and expenses, according to a press release. The shares are scheduled to settle on June 10.

STRD: High Yield, Higher Risk

STRD carries the highest yield among Strategy’s preferred offerings but comes with higher relative risk. It ranks junior to the company’s two other capital products:

• STRF: Senior, lower-volatility preferred shares
• STRK: Convertible preferred shares paying 8% annually
• STRD: Highest-yielding at 10%, but subordinate in the capital structure

STRD dividends are non-cumulative—if not declared in a given period, missed payments are not carried forward. Additionally, STRD shares are non-callable under standard conditions, with redemption permitted only under specific tax events or changes to the company’s corporate structure.

Strategic Use of Funds

Strategy said the funds raised will be used for general corporate purposes, including the continued accumulation of Bitcoin, reinforcing its position as the most BTC-heavy publicly traded firm.

Following the announcement, Strategy’s common stock rose 1.7% in pre-market trading, reaching $375.

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