- Strategy (MSTR, Financial) has priced its initial public offering of STRD stock at $85 per share, aiming to raise approximately $979.7 million.
- The proceeds from the offering are intended for general corporate purposes, including acquisitions of Bitcoin and working capital.
- STRD Stock offers non-cumulative dividends at an annual rate of 10.00% under specific conditions.
Strategyâ„¢ (MSTR) has announced the pricing of its initial public offering of 11,764,700 shares of the 10.00% Series A Perpetual Stride Preferred Stock (STRD Stock) at a price of $85.00 per share. The offering is set to close on June 10, 2025, pending customary closing conditions. The company projects net proceeds of about $979.7 million after deducting underwriting discounts and expenses.
The funds raised from this offering will be utilized for general corporate purposes, which include acquiring Bitcoin and supporting working capital. Strategy has outlined that dividends on STRD Stock are non-cumulative and will be paid at an annual rate of 10.00% of the stated amount, only when declared by the board.
For redemption purposes, Strategy reserves the right to redeem all STRD Stock if the outstanding shares fall below 25% of the originally issued total, or if certain tax events occur. In the event of a "fundamental change," shareholders can require Strategy to repurchase their shares at the stated amount plus any declared and unpaid dividends.
Barclays, Morgan Stanley, Moelis & Company, and TD Securities are the joint book-running managers for this offering, with a group of co-managers assisting in the process. The launch follows an effective registration statement filed with the SEC, ensuring compliance with security laws.
