Strategy has announced the pricing of its latest offering of perpetual preferred stock. The company often does this before making new Bitcoin acquisitions.
It priced 8.5 million shares at $85.00 per share for its 10:00% Series A Perpetual Strife Preferred Stock. The closing date is anticipated on March 25, 2025, under customary closing conditions. The net proceeds from the offering are estimated to be around $711.2 million after deducting underwriting commissions and expenses.
The strategy will use the proceeds for general corporate purposes, including investment in Bitcoin and working capital. The preferred stock will have a 10.00% annual dividend rate on a stated value per share of $100. The dividends will be paid quarterly, with payments beginning on June 30, 2025.
Dividend terms and redemption rights
Dividends, if not received promptly, will compound and grow at increasing rates, up to 18% per annum. All shares may be redeemed on specified conditions on the company’s part. The strategy may redeem all outstanding shares for cash if outstanding shares decline below 25% of the original issue.
Redemption rights apply if there are certain tax events. The redemption price will include the liquidation preference and any unpaid dividends.
In case there is a fundamental alteration, stockholders have a right to compel Strategy to redeem their shares. The company will repay the declared value and unpaid dividends.
The liquidity preference will be $100 per share and will vary subject to market conditions. The issue is being handled by various financial institutions, including Morgan Stanley, Barclays, and Citigroup, among several others. The issue takes place after effective registration with the SEC. The prospectus will be distributed among investors on the website of the SEC or from the underwriters directly.
Strategy’s Bitcoin-focused growth
Strategy is renowned for its bitcoin Treasury strategy. It has invested a lot into Bitcoin, with stock and debt offerings raising money for this purpose. It also develops AI-based enterprise analytics software, as well as holding Bitcoin.
The firm believes its blend of technology and digital holdings provides a sound foundation for long-term growth. Forward-looking statements for the offering and use of proceeds are included in the announcement.
Market conditions and regulatory considerations may impact the result. Investors should refer to Strategy’s filings with the SEC for risk factors and further information. Strategy is not obligated to revise these projections at a later date.
