Bitcoin Firm Strategy Lists STRF Stock on Nasdaq with Dual Yield Opportunity
Bitcoin company Strategy (formerly MicroStrategy) has launched its Strife perpetual preferred stock (STRF) today on Nasdaq.Chairman Michael Saylor confirmed this milestone in a post on X, announcing that STRF has begun trading. The announcement highlighted the unique investment opportunity presented by the new offering. Specifically, STRF provides USD yield for STRF investors and Bitcoin yield for MSTR investors.https://twitter.com/saylor/status/1904866572432244760Key Features of STRF Preferred StockFor context, Strategy launched STRF last week as a new perpetual preferred stock offering for institutional and select non-institutional investors. The stock pays a 10% annual dividend, with the first payment scheduled for June 30, 2025. This will provide STRF investors with a predictable return in USD.If dividends are unpaid, they will accumulate with compounded interest, increasing by 100 basis points each period, up to 18% per year.Notably, the STRF offering initially included 5 million shares of Series A Perpetual Strife Preferred Stock. However, in a subsequent update, the company announced an offering of 8.5 million shares.Proceeds Supporting Bitcoin AcquisitionsStrategy disclosed that it will use the net proceeds from the STRF offering, which raised approximately $711.2 million, for general corporate purposes, including the acquisition of Bitcoin. This move reflects the company's ongoing commitment to expanding its Bitcoin holdings.Indeed, the firm followed through with the disclosure as it consolidated its Bitcoin position days later. Specifically, Strategy bought 6,911 BTC tokens for $584 million on Monday. This latest acquisition brought its total BTC holdings to surpass the 500K milestone, with a total portfolio of 506,137 BTC.Notably, the company acquired this massive Bitcoin war chest with a cumulative investment of $33.7 billion, following a four-year-long acquisition spree. This is equivalent to an average of $66,608 per BTC. Meanwhile, Bitcoin's prevailing market value is $87,500. As a result, the company is sitting on an unrealized profit of approximately $10.3 billion.Strategy to Continue Buying BitcoinStrategy is showing no signs of slowing down its Bitcoin acquisitions. Jesse Myers, a Stanford MBA holder, remarked that the company's STRF offers a juicy 11.8% annual dividend, while U.S. Treasury bills offer just 4.2%."This is how Saylor will be able to source $3 trillion from the bond market to buy Bitcoin," Myers remarked.
Text source: The Crypto Basic
