Strategy announces planned offering of preferred stock

TYSONS CORNER, Va. - Strategy™ (NASDAQ:MSTR), a company known for its sizable Bitcoin treasury and currently valued at $101.79 billion, announced today its intention to offer 2.5 million shares of 10.00% Series A Perpetual Stride Preferred Stock (STRD Stock), subject to market and other conditions. According to InvestingPro analysis, the company’s stock has shown significant volatility, delivering a remarkable 142% return over the past year despite operating with short-term liquidity challenges. This offering is part of a strategy to raise funds for general corporate purposes, which include the acquisition of Bitcoin and bolstering working capital. With a current ratio of 0.66 and annual revenue of $459.28 million, the company’s financial position reflects both opportunities and challenges. For deeper insights into Strategy’s financial health and future prospects, InvestingPro subscribers have access to over 10 additional exclusive ProTips and comprehensive analysis.

The dividends for the STRD Stock are set at a non-cumulative rate of 10.00% per annum and will be paid quarterly in arrears, starting on September 30, 2025, if declared by the company’s board of directors. Strategy emphasized that there is no obligation to pay any dividend unless it is declared, and no dividends will accumulate over time.

Strategy reserves the right to redeem all outstanding shares of the STRD Stock for cash under certain conditions, including a reduction in the total number of outstanding shares to less than 25% of those initially offered or in the event of specific tax circumstances. The redemption price will include the liquidation preference and any declared and unpaid dividends.

In the event of a fundamental change, holders of STRD Stock will have the right to require Strategy to repurchase their shares at the stated amount plus any declared and unpaid dividends. The liquidation preference of the STRD Stock is initially set at $100 per share, subject to adjustments based on certain conditions.

Several financial institutions are managing the book for this offering, including Barclays, Morgan Stanley, Moelis & Company, and TD Securities, with additional support from co-managers such as The Benchmark Company and others.

This offering is made through an effective shelf registration statement filed with the Securities and Exchange Commission (SEC), and the securities will be offered by means of a prospectus supplement and accompanying prospectus available from the SEC’s website or directly from the managing financial institutions.

Strategy, which operates under the MicroStrategy Incorporated brand, is recognized as a pioneer in adopting Bitcoin as its primary treasury reserve asset and offers a variety of securities to provide investors with different levels of economic exposure to Bitcoin. The company also delivers AI-powered enterprise analytics software. With a beta of 3.81 and operating with a moderate debt level, Strategy presents a unique investment profile. Discover comprehensive valuation metrics and expert analysis in Strategy’s detailed Pro Research Report, available exclusively on InvestingPro, along with reports for 1,400+ other top US stocks.

The information in this article is based on a press release statement, and it should be noted that forward-looking statements included in the press release involve risks and uncertainties that could cause actual results to differ materially from those anticipated.

In other recent news, Strategy, Inc. has reported significant financial activities, including the acquisition of 4,020 bitcoins for $427 million, funded primarily through its at-the-market (ATM) offerings. This acquisition is part of Strategy’s broader effort to enhance its bitcoin holdings, which now total approximately 580,250 bitcoins valued at over $63.5 billion. The company has also announced a $2.1 billion preferred stock sale, with proceeds intended for general corporate purposes and further bitcoin acquisitions. Analysts from BTIG and TD Cowen have maintained their positive outlook on Strategy, with BTIG raising the stock price target to $620 and TD Cowen maintaining a target of $590, both affirming a Buy rating. Benchmark analyst Mark Palmer has highlighted Strategy’s BTC Yield, noting a 16.8% increase in bitcoin holdings relative to shares outstanding. Additionally, Strategy is facing a class action lawsuit alleging misleading statements about its bitcoin investment strategy, which the company plans to contest vigorously. Despite these legal challenges, Strategy continues to focus on leveraging financial instruments to maximize shareholder value through its aggressive bitcoin investment strategy.

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