In brief
- Strategy upsized its offering of STRD to $1 billion from $250 million.
- The preferred stock pays a 10% quarterly dividend.
- Strategy’s Michael Saylor described it as the fourth gear in the BTC treasury company’s “Bitcoin engine.”
Strategy, formerly MicroStrategy, has increased its offering of perpetual Stride preferred stock, or STRD, to $1 billion from $250 million alongside the product’s pricing, according to a company blog post published on Friday.
Strategy said the product, which will pay investors a 10% non-cumulative dividend, will be offered to the public at $85 per share. In terms of the offering’s proceeds, Strategy will walk away with $979 million to add to its Bitcoin stockpile, the company added.
STRD represents the third form of preferred stock established by Strategy so far this year, accompanying the company’s STRF and STRK products. Each offering has unique features and benefits, between redemption features and the ability for dividends to accrue. Strategy originally planned to offer STRD to investors at $100 per share.
STRD, unlike Strategy’s STRF offering, which also pays an 10% quarterly dividend, does not allow for the accrual of missed dividend payments. And unlike Strategy’s STRK offering, STRD does not allow an investor to convert the preferred stock into common shares at a later date. STRD is non-callable for life, meaning the preferred stock has no associated maturity date.
“It’s our high-yield credit instrument,” Strategy co-founder and Executive Chairman Michael Saylor said in a video that he shared to X this week. “Compared to STRK or STRF, it should be a higher-yielding preferred instrument.”
During a presentation, Saylor shared a graphic stating that STRD, which is listed on the Nasdaq, has “limited” sensitivity to Bitcoin’s price. In terms of seniority, STRD investors rank behind STRF and STRK’s holders, yet they come before common shareholders.
“STRD represents the fourth gear in our Bitcoin engine,” he added. “The point of our engine is to generate BTC torque via surgical management of our [at-the-money offering programs].”
Bitcoin Price Flat as May US Jobs Report Beats Estimates
Bitcoin stayed flat after the Bureau of Labor Statistics May nonfarm payrolls report showed a steady jobs market in May—an encouraging sign that the economy may be stabilizing. Economists had forecast that the U.S. would add 125,000 jobs in May, according to Dow Jones. But this morning's Bureau of Labor Statistics report shows that employers hired 139,000 works last month. Bitcoin peaked above $105,000 earlier today, but has fallen 1.5% in the past 24 hours and is currently changing hands for $1...
The firm currently holds 580,995 Bitcoin, or $60.9 billion worth as of this writing. Bitcoin is currently priced at $104,638, basically flat over the past 24 hours and rebounding from a brief dip below the $101,000 mark Thursday afternoon.
Strategy’s stock price rose as high as $377.80 during pre-market trading on Friday but began sliding after the opening bell, according to Yahoo Finance. Now they're up even higher, trading hands around $378.26, a 2.6% increase.
Edited by James Rubin
