On June 2, Strategy announced plans for an initial public offering (IPO) of "10% Series A Perpetual Stride Preferred Stock" at $100 per share under the ticker STRD.
Announcement of STRD IPO
Strategy has stated its intention to use the net proceeds from this offering for "general corporate purposes, including the acquisition of Bitcoin and for working capital."
Conditions of the Stock Offering
The stock offering promises a 10% annual dividend rate, but payments are not mandatory, and dividends are non-cumulative. Payments will be made quarterly, with the first scheduled for September 30, 2025.
Strategy's Bitcoin Acquisition
On the same day, Strategy announced it had purchased an additional 705 BTC worth $75.1 million. This increases their Bitcoin reserve to 580,955 BTC, representing approximately 3% of the total supply.
In conclusion, the STRD stock IPO will enhance Strategy’s capital for ongoing investments in Bitcoin, as evidenced by recent acquisitions and growing reserves.
