Strategy to issue 2.5M STRD shares to fund more Bitcoin purchases.
Saylor urges Bitcoin commitment as the firm adds 705 BTC amid a $105K price surge.
Strategy (formerly MicroStrategy), known as the largest corporate holder of Bitcoin [BTC], has announced plans to issue 2.5 million perpetual preferred shares under the name “Stride” (STRD).
By leveraging equity offerings instead of traditional debt, the company continues to reinforce its position as a major player in institutional Bitcoin accumulation.
Remarking on which, the company said in a statement,
“Strategy intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin and for working capital.”
Details of the Strategy’s equity offering
That being said, MicroStrategy’s latest equity offering involves 2.5 million shares of its 10% Series A Perpetual Stride Preferred Stock (STRD).
These shares will provide investors with non-cumulative cash dividends at an annual rate of 10%, distributed quarterly starting from the 30th of September 2025.
Importantly, if the company chooses not to declare a dividend for a given period, it won’t owe the skipped payment in the future.
The firm has the right to redeem all outstanding STRD shares under certain conditions. This includes when the total share count drops below 25% of the original issue or due to qualifying tax events.
If redeemed, shareholders will receive $100 per share along with any declared but unpaid dividends.
What’s more?
Additionally, Strategy has also outlined specific protections for holders of its STRD Stock in the event of a “fundamental change.”
According to the company, if such a change occurs, as defined under the stock’s certificate of designations, investors will have the right to demand a cash buyback of some or all of their STRD shares.
The repurchase amount will include the stated value of the stock plus any declared and unpaid dividends accrued up to, but not including, the repurchase date triggered by the fundamental change.
Needless to say, this clause offers an added layer of financial security to investors participating in the offering.
However, this move was not well appreciated by the crypto community, as noted by an X (formerly Twitter) user who said,
“This one now looks like you’re running a ponzi scheme Michael.”
Market trend and Saylor’s viewpoint
At the time of writing, Bitcoin was trading at $105,318.28 at the time, marking a modest 0.90% gain in 24 hours, as per CoinMarketCap.
The surge aligned with Strategy’s latest move to strengthen its Bitcoin holdings by acquiring an additional 705 BTC for approximately $75 million.
During his keynote, “21 Ways to Wealth,” Saylor urged investors to remain committed to Bitcoin, calling it the ultimate form of capital in today’s financial world.
