Strategy Prices Perpetual Strife Preferred Stock at $85 per Share
- Strategy prices 8.5M shares of Series A Preferred Stock.
- Investors earn a 10.00% annual dividend, paid quarterly in cash.
- Net proceeds will fund Bitcoin acquisition and corporate growth.
Strategy (Nasdaq: MSTR/STRK) announced the pricing stage of its Series A Perpetual Strife Preferred Stock offering on March 20, 2025. The company plans to sell 8,500,000 shares of its stock at a price of $85.00 per share. The offering must fulfill all customary closing conditions before the expected settlement on March 25, 2025.
Strategy Raises Perpetual Strife Preferred Stock to $711.2M
The total net proceeds from this offering are estimated at $711.2 million. The company plans to allocate these funds toward corporate objectives such as Bitcoin purchases and operational capital needs. The company will use proceeds to enhance its financial position and expand their business operations.
The holders of Series A Perpetual Strife Preferred Stock will receive fixed annual dividends at a rate of 10.00%. The company plans to initiate dividend payments every quarter starting on June 30, 2025. The company will disburse payments in cash only when its board of directors decides to distribute funds from available resources.
Any unpaid regular dividend will accumulate at compound rates on quarterly periods. An initial compounded dividend rate is set at 11.00% and the company will increase this rate by 100 basis points each year. A maximum annual dividend rate is set at 18% per year if the dividends remain unpaid over multiple quarters.
Redemption and Repurchase of the Preferred Stock
The firm has the freedom to buy back all preferred stock shares whenever it chooses. Moreover, the company retains the right to redeem preferred stock when the shares in circulation fall below 25% of their initial offering quantity. Additionally, the company reserves the right to redeem stock under particular tax-related conditions.
The preferred stockholders have a right to demand share repurchase when fundamental changes occur to their stock. The repurchase amount will be the sum of liquidation preference and any unpaid regular dividend amounts. This provision offers investor protection in case of major corporate transformations.
Management of the Preferred Stock
The initial liquidation preference for the preferred stock stands at $100 per share. The liquidation preference is adjusted daily based on the highest value between different elements which include the last sale price. This ensures that the stock price is adjusted automatically to match current market conditions.
The offering will be managed by major financial institutions such as Morgan Stanley, Citigroup and Barclays. The company operates this offering under an active SEC shelf registration statement. The offering will use both a prospectus supplement and an accompanying prospectus document.
The offering reflects Strategys market strategy to expand its cryptocurrency scope and strengthen its market position. Investors can receive regular dividend payments and achieve capital appreciation from the preferred stock investments.
Read more: https://www.tronweekly.com/strategy-price-perpetual-strife-preferred-stock/
Text source: TronWeekly
