Strategy (NASDAQ: MSTR/STRK/STRF) recently priced its initial public offering of 11,764,700 shares of 10.00% Series A Perpetual Stride Preferred Stock (STRD Stock) at $85.00 per share. The company estimates the net proceeds from the offering to be approximately $979.7 million. The dividends on shares of the STRD Stock will not be mandatory, and holders will be entitled to receive non-cumulative dividends at a rate per annum equal to 10.00% on the stated amount.
The liquidation preference of the STRD Stock will initially be $100 per share. Strategy will have the right to redeem all, but not less than all, of the STRD Stock, at any time, for cash if the total number of shares of all STRD Stock then outstanding is less than 25% of the total number of shares of STRD Stock originally issued. Additionally, holders of the STRD Stock will have the right to require Strategy to repurchase some or all of their shares at a cash repurchase price equal to the stated amount of the STRD Stock to be repurchased, plus declared and unpaid regular dividends.
Strategy intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin and for working capital. The offering is being made pursuant to an effective shelf registration statement on file with the Securities and Exchange Commission (SEC).
Barclays, Morgan Stanley, Moelis & Company, and TD Securities are acting as joint book-running managers for the offering, while The Benchmark Company, Clear Street, Amerivet Securities, Bancroft Capital, Keefe, Bruyette & Woods, and BTIG are acting as co-managers for the offering.
Strategy, also known as MicroStrategy Incorporated, is the world's first and largest Bitcoin treasury company. The company has adopted bitcoin as its primary treasury reserve asset and strategically accumulates bitcoin through equity and debt financings, as well as cash flows from its operations. Additionally, Strategy provides industry-leading AI-powered enterprise analytics software. The company believes that its combination of operational excellence, strategic bitcoin reserve, and focus on technological innovation positions it as a leader in both the digital asset and enterprise analytics sectors, offering a unique opportunity for long-term value creation. Following these announcements, the company's shares moved 1.76%, and are now trading at a price of $375.28. For more information, read the company's full 8-K submission here.
