Strategy, led by Michael Saylor, has announced plans to raise $711 million through a new stock offering called 'Series A Perpetual Strife Preferred Stock' (STRF). This move aims to boost its Bitcoin reserves, which are nearing 500,000 BTC.
Details of the New Offering
Due to high demand, the company increased its offering from 5 million to 8.5 million shares. Each share is priced at $85. The preferred stock will earn cumulative dividends at a fixed rate of 10.00% per year, based on a stated amount of $100 per share.
Financial Institutions and Managers
Several financial institutions are involved in this offering. Morgan Stanley, Barclays Capital, Citigroup Global Markets, and Moelis & Company are the main managers. AmeriVet Securities, Bancroft Capital, BTIG, and The Benchmark Company are also helping with the offering.
Key Terms and Strategy’s Plans
The initial liquidation preference for the stock is set at $100 per share. This amount will change daily based on various factors, including recent trading prices. The company has the right to redeem shares if the total outstanding amount falls below 25% of the original shares or if certain tax events occur. Shareholders can also ask the company to buy back shares if there is a significant change in the company. This stock offering is part of Strategy’s larger 21/21 plan aiming to raise $42 billion over three years to bolster its Bitcoin holdings.
This Strategy initiative reflects its ambitious plans to strengthen its position in the digital currency market by expanding its Bitcoin reserves.
