Strategy™ (NASDAQ: MSTR/STRK) recently announced the pricing of its offering on March 20, 2025, of 8,500,000 shares of 10.00% Series A Perpetual Strife Preferred Stock at a public offering price of $85.00 per share. The company estimates that the net proceeds from the offering will be approximately $711.2 million after deducting underwriting discounts, commissions, and estimated offering expenses. The net proceeds are intended for general corporate purposes, including the acquisition of bitcoin and working capital.
The Perpetual Strife Preferred Stock will accumulate cumulative dividends at a fixed rate of 10.00% per annum on the stated amount of $100 per share. Regular dividends will be payable quarterly in arrears on March 31, June 30, September 30, and December 31 of each year, beginning on June 30, 2025. If any accumulated regular dividend is not paid on the applicable regular dividend payment date, compounded dividends will accumulate on the unpaid amount, with the compounded dividend rate increasing by 100 basis points per annum for each subsequent regular dividend period, up to a maximum dividend rate of 18% per annum.
The company also retains the right to redeem all or part of the Perpetual Strife Preferred Stock for cash under certain conditions, including when the total number of outstanding shares falls below a specified threshold or if certain tax events occur. Additionally, holders of the Perpetual Strife Preferred Stock will have the right to require the company to repurchase some or all of their shares at a cash repurchase price equal to the stated amount of the stock plus accumulated and unpaid regular dividends in the event of a "fundamental change."
The liquidation preference of the Perpetual Strife Preferred Stock is initially set at $100 per share and will be adjusted daily based on specified criteria.
The offering is being managed by Morgan Stanley & Co. LLC, Barclays Capital Inc., Citigroup Global Markets Inc., Moelis & Company LLC, Cantor Fitzgerald & Co., Keefe, Bruyette & Woods, Inc., Mizuho Securities USA LLC, and SG Americas Securities, LLC as joint book-running managers, with Amerivet Securities, Inc., Bancroft Capital, LLC, BTIG, LLC, and The Benchmark Company, LLC serving as co-managers. The offering is made pursuant to an effective shelf registration statement on file with the Securities and Exchange Commission (SEC).
Strategy, also known as MicroStrategy Incorporated, is a publicly traded company and the world’s first and largest bitcoin treasury company. The company has adopted bitcoin as its primary treasury reserve asset and strategically accumulates bitcoin using proceeds from equity and debt financings, as well as cash flows from operations. In addition to its focus on bitcoin, Strategy provides AI-powered enterprise analytics software and is committed to technological innovation.
As of the time of the press release, Strategy's stock was trading on the NASDAQ under the ticker symbols MSTR and STRK.
Sources: * Strategy Press Release (March 21, 2025) As a result of these announcements, the company's shares have moved 0.6% on the market, and are now trading at a price of $304.0. If you want to know more, read the company's complete 8-K report here.
