Strategy, a business intelligence firm, and a Bitcoin investor plan to issue five million shares of its Series A Perpetual Strife Preferred Stock. The company will use the funds to buy more Bitcoin and for corporate purposes.
The move is part of its long-term strategy to hold Bitcoin reserves and maintain financial flexibility. The stock will carry a 10% cash dividend on an annual basis, paid quarterly whenever the board declares it.
If the company does not pay a dividend, it will compound quarterly at an escalating rate, starting at 11% and increasing by 1% per period until it reaches 18% per annum. Such a structure incentivizes punctuality and offers higher returns to the investor in the event of delay.
Bitcoin stock the Strategy’s redemption terms
The strategy has the authority to buy back all the outstanding shares under specific conditions. If outstanding shares fall below 25% of the initial issuance, the company may repurchase them by paying the liquidation preference amount plus unpaid and accrued dividends.
Besides, when taxation events require restructuring, Strategy may choose to redeem the shares in full. In the event of a fundamental change, the shareholders have the right to insist on the repurchase of the shares by the company at the stated amount, plus any accrued dividend.
The company will set the liquidation preference at $100 per share and adjust it based on market conditions. If the company sells the shares, it will recalculate the liquidation preference using recent trading prices or a ten-day average of share values.
Bitcoin Strategy is offering growth
The offering is being led by Morgan Stanley, Barclays, Citigroup, and Moelis & Company. It is being made on an effective shelf registration with the Securities and Exchange Commission. Investors can see official documents on the SEC website or request copies through the underwriters.
Strategy is the biggest Bitcoin Treasury company in the globe, accumulating Bitcoin via equity issuance, debt funding, and operating cash flow. It is also an AI-driven enterprise analytics software provider, fusing technological innovation with digital asset investment. Its two-pronged approach strengthens its position in the market and enhances its growth potential.
This announcement is not an offering or a solicitation of offers to acquire securities in any jurisdiction where it is not legal. Forward-looking statements in this announcement involve certain risks and uncertainties.
Outcomes may vary due to factors in the marketplace, regulation changes, or other factors not within our control. Investors should review risk disclosures before investing.
