Strategy prices initial public offering of preferred stock at $90

TYSONS CORNER, Va. - Strategy (Nasdaq:MSTR/STRK/STRF/STRD), currently trading at $414.92 with a market capitalization of $117.65 billion, announced Thursday it has priced its initial public offering of 28,011,111 shares of Variable Rate Series A Perpetual Stretch Preferred Stock at $90 per share. According to InvestingPro data, the company has delivered an impressive 158% return over the past year.

The company expects to raise approximately $2.47 billion in net proceeds after deducting underwriting discounts, commissions and estimated offering expenses. The settlement is scheduled for July 29, 2025, subject to customary closing conditions.

According to the company’s press release statement, Strategy intends to use the proceeds for general corporate purposes, including bitcoin acquisition and working capital. The company operates with a moderate debt level, with a debt-to-capital ratio of 0.06, as reported by InvestingPro.

The preferred stock, which will trade under the ticker STRC, will accumulate cumulative dividends at a variable rate on a stated amount of $100 per share. The initial monthly regular dividend rate is set at 9.00% per annum, with payments beginning August 31, 2025.

Strategy will have the right to adjust the monthly dividend rate, subject to certain restrictions. The company stated its current intention is to adjust the rate to maintain the stock’s trading price at or close to its stated amount of $100 per share.

The offering includes redemption provisions allowing Strategy to redeem all or part of the outstanding shares under specific conditions, including after the stock is listed on major exchanges.

Morgan Stanley, Barclays, Moelis & Company and TD Securities are acting as joint book-running managers for the offering, with several other firms serving as co-managers.

Strategy, formerly known as MicroStrategy, describes itself as "the world’s first and largest Bitcoin Treasury Company" that has adopted Bitcoin as its primary treasury reserve asset.

The offering is being made pursuant to an effective shelf registration statement on file with the Securities and Exchange Commission.

In other recent news, MicroStrategy Incorporated has disclosed a class action lawsuit filed against the company and its board of directors in the Delaware Court of Chancery. The lawsuit alleges violations of the Delaware General Corporation Law and a breach of fiduciary duty concerning an amendment related to the company’s preferred stock. Meanwhile, MicroStrategy announced plans to conduct an initial public offering of 5 million shares of its Variable Rate Series A Perpetual Stretch Preferred Stock, with the proceeds intended for general corporate purposes, including bitcoin acquisition. In related developments, TD Cowen raised its price target for MicroStrategy to $680 from $590, maintaining a Buy rating, citing the company’s status as the largest corporate holder of bitcoin. Additionally, MicroStrategy reported updates on its ATM offering programs, revealing $330.9 million in net proceeds from selling 797,008 shares of Class A common stock. The company still has $17.78 billion available for issuance under this program. These developments come amid broader market movements, including the rise of crypto-linked stocks following the signing of a stablecoin regulation bill by President Donald Trump.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.