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Strategy announced the pricing of its initial public offering of 28,011,111 shares of Variable Rate Series A Perpetual Stretch Preferred Stock at $90 per share. The company expects to raise approximately $2.474 billion in net proceeds after deducting underwriting fees and expenses.
The STRC Stock offering is scheduled to settle on July 29, 2025, subject to customary closing conditions. Strategy (MSTR/STRK/STRF/STRD) stated it intends to use the proceeds for general corporate purposes, including bitcoin acquisition and working capital.
The preferred shares will carry an initial monthly dividend rate of 9.00% per annum on a $100 stated amount per share. Dividends will be paid monthly beginning August 31, 2025, when declared by the board of directors. Strategy retains the right to adjust the dividend rate subject to certain restrictions, including limitations on reductions and requirements that accumulated dividends be paid in full.
The company can redeem the shares at $101 per share plus accumulated dividends once the stock lists on major exchanges, provided at least $250 million in aggregate stated amount remains outstanding. Holders have repurchase rights at the $100 stated amount plus dividends if certain fundamental changes occur.
The liquidation preference will initially be $100 per share but will adjust daily based on trading prices and other factors. Morgan Stanley, Barclays, Moelis & Company and TD Securities serve as joint book-running managers for the offering.
Strategy describes itself as a publicly traded company that has adopted bitcoin as its primary treasury reserve asset and also provides enterprise analytics software.