Strategy (Nasdaq: MSTR), known for its aggressive Bitcoin investment strategy, has announced the initial public offering (IPO) of 2.5 million shares of its new 10% Series A Perpetual Stride Preferred Stock. The shares will trade under the ticker STRD, and proceeds from the sale will primarily go toward purchasing more Bitcoin and supporting general corporate activities.
STRD Stock Details: Dividend, Redemption, and Repurchase Terms
The STRD preferred shares will offer investors a 10% annual non-cumulative cash dividend, payable quarterly. The first dividend is scheduled for September 30, 2025. While the dividends are not guaranteed every year (non-cumulative), this high yield may appeal to income-focused investors.
Investors also receive some protection: if a “fundamental change” occurs—such as a major company restructure—they can require Strategy to repurchase their shares at $100 each, plus any unpaid dividends. Additionally, Strategy reserves the right to redeem STRD shares if the total outstanding preferred stock falls below 25% of the original issuance, or if the company encounters specific tax-related events.
Strategy Adds 705 Bitcoin, Boosting Holdings to Nearly 581,000 BTC
In a bold move, Strategy recently added 705 more Bitcoin to its reserves, spending $75 million at an average price of $106,495 per coin. This purchase increases Strategy’s total Bitcoin holdings to 580,955 BTC, solidifying its position as the largest corporate Bitcoin holder in the world.
The latest purchase was funded through an at-the-market offering of preferred shares, including sales of STRD as well as previously issued preferred stocks STRK and STRF. These offerings brought in $74.6 million, nearly covering the full cost of the new Bitcoin acquisition.
With this continued expansion into digital assets, Strategy remains at the forefront of corporate Bitcoin adoption, using both equity markets and long-term strategies to strengthen its cryptocurrency treasury.
