Strategy announced Friday that it has priced its offering of 8.5 million shares of 10% Series A Perpetual Strife Preferred Stock at $85 per share, with settlement expected on March 25. The offering is projected to generate approximately $711.2 million in net proceeds, which the company plans to use for general corporate purposes, including acquiring Bitcoin and funding working capital.
Strategy’s Preferred Stock Offering Details
The preferred stock will pay cumulative dividends at an annual rate of 10% based on a stated amount of $100 per share. Dividends will be payable quarterly, beginning June 30, 2025, but only if declared by the company’s board of directors. Unpaid dividends will compound at an increasing rate, starting at 11% and potentially rising to 18% annually.
Strategy retains the right to redeem all outstanding shares under certain conditions, including if the number of outstanding shares falls below 25% of the initial issuance or if specific tax events occur. In the event of a “fundamental change,” holders may require the company to repurchase their shares at the stated amount plus any unpaid dividends cekijp daftar.
Stock Price Adjustments and Market Impact
The liquidation preference per share will initially be set at $100 but may fluctuate based on market activity. Adjustments will be determined daily based on recent trading prices or an average of the previous 10 days’ prices, whichever is highest cekijp.
This offering follows Strategy’s continued focus on digital asset investment, particularly bitcoin. The move aligns with the company’s pattern of leveraging capital markets to expand its cryptocurrency holdings while maintaining operational flexibility.
