Strategy Inc. has announced the pricing of its new stock offering. The company will sell 28,011,111 shares of Variable Rate Series A Perpetual Stretch Preferred Stock (STRC Stock) at $90 per share. The public offering is expected to settle on July 29, 2025, pending all typical closing conditions of the capital markets.
Strategy forecasts around $2.474 billion in net proceeds after removing underwriting fees and estimated offering-related costs. The company has plans to use those funds for working capital, corporate purposes, and strategic Bitcoin acquisitions.
Dividends on STRC stock will accrue at a variable rate based on a $100 stated value per share, monthly. The first monthly dividend will be paid on August 31, 2025, and will start at an initial 9.00% annualized rate.
The board retains full discretion to adjust future dividend rates, with limits on downward changes to protect shareholder value. A reduced rate may only be set if previous due dividends have already been paid in full and on time.
If Strategy fails to pay a regular dividend, the unpaid amount will earn compounded interest monthly at the ongoing dividend rate. The STRC stock also allows Strategy to redeem shares for cash starting from the day of exchange listing.
Strategy cleanup clause enables full redemption
The redemption price starts at $101 per share, along with unpaid dividends due up to the redemption date. Partial redemptions must leave at least $250 million worth of STRC stock in circulation after the transaction.
If outstanding shares fall below 25% of the original total, Strategy may fully redeem all STRC stock under a cleanup clause. A tax-related event may also trigger a full redemption of STRC shares with full dividend compensation included.
In the event of a “fundamental change,” shareholders can demand buyback of their shares at full stated value plus dividends. The liquidation preference will adjust daily to the higher of $100, the recent market price, or a calculated ten-day trading average.
Morgan Stanley, Barclays, Moelis & Company, and TD Securities are leading the offering as joint bookrunners. The deal is being registered under SEC rules and will be available through an official prospectus and public disclosures.
