Strategy announces STRD offering with 10% yield and plans to use the proceeds to expand its Bitcoin reserve. However, the company noted that the funds raised will not be used exclusively to acquire Bitcoin, but also to cover other corporate expenses and support working capital.
A New Move by Strategy Toward Further Bitcoin Accumulation
Strategy may serve as a model of what consistent goal execution looks like, as they continue to accumulate Bitcoin through all market volatility and demonstrate the extraordinary profitability of doing so when managed with precision.
MSTR is showing results that match, or often exceed, those of the top tech giants. Specifically, the 3-month return, 1-year return, and base return stand at 48%, 129%, and 2911%. For comparison, this even surpasses Nvidia, whose corresponding results–considered record-breaking–are 20%, 19%, and 1130%, while Microsoft can claim only 19%, 12%, and 122%, respectively.
Naturally, these figures are closely tied to Bitcoin’s historical all-time highs, which Strategy has managed to take advantage of, and might look entirely different in another cycle. Still, the fact remains: without a disciplined and deliberate approach, such performance would not have been possible.
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That said, Strategy continues to refine its methods and explore new instruments–one of which is the proposed initial public offering of 2,500,000 shares of 10.00% Series A Perpetual Stride Preferred Stock (STRD), registered under the Securities Act of 1933. And yes, while the company made clear that proceeds will not be used exclusively for Bitcoin acquisitions, it confirmed that such purchases will be a required use of funds.
There are also a couple of important clarifications.
- Holders of STRD will be entitled to receive non-cumulative dividends at a rate of 10.00% per annum on the stated amount of the shares, subject to declaration by the board of directors or a duly authorized committee.
- Dividends will be paid only out of legally available funds and exclusively in cash, with the first payment scheduled for September 30, 2025, and subsequent payments to follow at the end of each calendar quarter.
- In addition, Strategy will have the right to redeem all, but not less than all, of the STRD shares if less than 25% of the originally issued STRD shares, including future tranches, remain outstanding.
The terms also provide for redemption in the event of certain tax-related occurrences. The redemption amount will include the liquidation preference of the shares and any declared but unpaid dividends, excluding undeclared dividends. If an event classified as a “fundamental change” occurs under the terms of the issuance, holders of STRD will have the right to require the company to repurchase their shares at the stated amount, including any declared but unpaid dividends as of the repurchase date.
The initial liquidation preference of STRD is set at $100 per share and after the offering, it will be recalculated daily as the greatest of the following three values: $100, the last reported sale price as of the previous trading day, or the arithmetic average of the closing prices over the preceding ten trading days.
Conclusion
We’ll see whether this move proves to be as successful as others in Strategy’s portfolio – and whether their approach continues to deliver. In any case, their already record-breaking performance gives some reason for optimism about future initiatives.
