Strategy™ (NASDAQ: MSTR; STRK) has announced a proposed offering of 5,000,000 shares of its series A perpetual strife preferred stock. The stock will accumulate cumulative dividends at a fixed rate of 10.00% per annum on the stated amount, with regular dividends payable quarterly beginning on June 30, 2025. In the event of unpaid regular dividends, compounded dividends will accumulate at an increasing rate, up to a maximum of 18% per annum.
The liquidation preference of the perpetual strife preferred stock will initially be $100 per share, with adjustments made daily based on specific criteria. Strategy has the right to redeem all outstanding shares of the perpetual strife preferred stock under certain conditions, including if the total number of outstanding shares falls below 25% of the total number of shares originally issued.
The offering is being made through joint book-running managers Morgan Stanley & Co. LLC, Barclays Capital Inc., Citigroup Global Markets Inc., and Moelis & Company LLC, pursuant to an effective shelf registration statement on file with the Securities and Exchange Commission.
Strategy intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of Bitcoin and for working capital. The company is positioning itself as the world’s first and largest Bitcoin treasury company and advocates for the role of Bitcoin as digital capital. Additionally, Strategy provides industry-leading AI-powered enterprise analytics software, leveraging its development capabilities to explore innovation in Bitcoin applications.
As of now, Strategy has not disclosed the offering price or the expected closing date for the proposed offering. As a result of these announcements, the company's shares have moved -3.5% on the market, and are now trading at a price of $284.03. For the full picture, make sure to review MicroStrategy's 8-K report.
