Strategy Announces New Preferred Stock Offering to Fund Bitcoin Purchases
Strategy announces a public offering of 5 million shares of its Series A Perpetual Strife Preferred Stock to fund Bitcoin acquisitions and corporate needs.
Strategy has announced plans to issue Series A Perpetual Strife Preferred Stock in a public offering. The company intends to issue 5 million shares, accumulating a 10% annual dividend. The proceeds from the offering will be used for Bitcoin acquisition and general corporate purposes.
The newly issued stock will pay dividends quarterly. If any dividend payment is delayed, compounded dividends will accrue at an increasing rate, reaching up to 18% per year. Strategy has the right to redeem all outstanding shares if less than 25% of the originally issued stock remains or in case of certain tax events. The redemption price will be based on the liquidation preference, plus any unpaid dividends.
If a fundamental change occurs, such as a significant restructuring, holders will have the right to demand repurchase of their shares at a price including all accumulated and unpaid dividends.
The liquidation preference per share is initially set at $100 and will adjust daily based on trading prices and recent transactions. The offering will be led by Morgan Stanley, Barclays, Citigroup, and Moelis & Company, with shares being sold under an SEC-registered offering.
This announcement does not constitute an offer to sell securities. Investors can access the prospectus through the SEC website or by contacting the underwriters. Strategy, known as the world’s first Bitcoin Treasury Company, continues to integrate Bitcoin into its corporate strategy, utilizing proceeds from financing to expand its digital asset holdings and enterprise analytics solutions.
