Michael Saylor Plans Bitcoin-Backed IPO to Fuel Crypto Investments and Business Expansion
David ClarkeThe company said its new preferred stock offering comes after the successful Strike and Strife issuances earlier this year.[...]
Strategy Seeks to Raise $250 Million Through Preferred Stock Offering to Fund Bitcoin Acquisitions
Strategy, formerly known as MicroStrategy, has announced plans to raise fresh capital by selling shares of preferred stock. The proceeds from the offering will be used for Bitcoin purchases and other operational expenses.
The company is seeking to raise $250 million through an initial public offering of 2.5 million shares of its "10% Series A Perpetual Stride Preferred Stock" (STRD). The stock will be listed on the Nasdaq, with each share initially priced at $100, offering investors a 10% annual dividend yield.
In its preliminary prospectus, Strategy stated that it "intends to use the net proceeds from this offering for general corporate purposes, including the acquisition of Bitcoin and for working capital." The announcement follows Strategy CEO Michael Saylor's speech at Bitcoin 2025 in Las Vegas, where he promoted Bitcoin as "perfected capital" and encouraged attendees to invest in the cryptocurrency.
This marks Strategy's third preferred stock offering this year, following its Strike (STRK) and Strife (STRF) offerings. In March, the company expanded these offerings from $500 million to $723 million shortly after their announcement. The STRD offering will feature a 10% annual, non-cumulative cash dividend, payable quarterly beginning September 30.
Preferred stock like Strategy's STRD, STRF, and STRK offerings blend bond-like characteristics with stock ownership. Holders receive priority over common shareholders for dividends and asset claims but typically lack voting rights. These dividends are not guaranteed or cumulative—if undeclared in a quarter, investors won't receive payment or recover missed payments later.
Strategy currently holds over $61 billion worth of Bitcoin, valued at approximately $106,000 per coin. The company views its Bitcoin reserves as long-term holdings and plans to acquire more. However, Strategy cautions that a significant drop in Bitcoin's value could impact its ability to meet financial obligations. Additionally, unrealized gains on Bitcoin holdings might subject the company to the corporate alternative minimum tax.
