Strategy has priced a new public offering of its STRC Stock at $90 per share. The company plans to issue over 28 million shares, aiming to raise about $2.47 billion after expenses. The offering is set to close on July 29, pending routine approvals.
The company will use the funds to support general operations and increase its Bitcoin reserves. This move strengthens Strategy’s long-standing approach of turning its balance sheet into a Bitcoin-heavy portfolio. The offering reflects its ongoing belief in Bitcoin as a strategic financial asset.
STRC shares pay monthly dividends in cash
Each STRC Stock share is $100 in face value. It pays monthly dividends with an original rate of 9% annually. Strategy retains discretion to change this rate but is subject to rigid restrictions. It can’t lower the dividend too significantly or below a certain threshold, which is connected with the one-month term SOFR rate.
The rate can be altered only by the company if previous dividends are paid in full. If a Strategy is missing a dividend payment, it will accrue interest on the amount due and compound it until it pays off the arrears. Dividends will be paid only in cash. Stock terms include redemption features incorporated by the Strategy.
It may choose to buy back some or all of the stock under certain conditions. For instance, if the total number of STRC shares falls below 25% of the original offering, or if specific tax rules change, it can redeem the entire issue. The redemption price will be $101 per share or more, plus any pending dividends.
Strategy offers stock with $100 buyback option
The shares will also have investor protections. If there is a significant change in control, holders will be able to demand a full buyback at $100 a share, plus any dividends earned but not paid. Each share value will change on a daily basis.
It will ever be representative of the superior of the $100 face amount, current trading price, or 10-day average. This mechanism is used to balance the announced value of a stock with its trading price. Morgan Stanley, Barclays, Moelis, and TD Securities are in charge of managing the offering. Other corporations are co-managing.
The shares will be trading on Nasdaq when they go public. Strategy is still a leader in Bitcoin finance. By offering this deal, it gives investors an additional avenue of exposure to digital currencies in a vehicle that earns dividends.
