Strategy Announces $250 Million STRD Stock Offering to Fund Bitcoin Expansion

Michael Saylor’s Bitcoin treasury company launches third preferred stock offering this year

June 3, 2025 – Strategy, the world’s largest corporate Bitcoin holder formerly known as MicroStrategy, announced Monday its plans to raise $250 million through an initial public offering of a new class of preferred stock, with proceeds earmarked for additional Bitcoin purchases and working capital.

Strategy today announced the launch of $STRD (“Stride”), a new perpetual preferred stock offering, available to institutional investors and select non-institutional investors. For more information, click here. $MSTRhttps://t.co/GAWggiYwX9

— Strategy (@Strategy) June 2, 2025

The Tysons, Virginia-based company will issue 2.5 million shares of its “10% Series A Perpetual Stride Preferred Stock” under the ticker symbol STRD, priced at $100 per share. The offering represents Strategy’s third preferred stock issuance this year, following successful Strike (STRK) and Strife (STRF) offerings earlier in 2025.

High-Yield Dividend Structure

The STRD shares will offer investors a compelling 10% annual dividend yield, paid quarterly in arrears on March 31, June 30, September 30, and December 31 of each year, beginning September 30, 2025. However, these dividends are non-cumulative, meaning if Strategy’s board chooses not to declare them in any given quarter, unpaid amounts will not carry over to future periods.

“Strategy intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin and for working capital,” the company stated in its announcement.

Redemption and Protection Features

The preferred stock comes with several protective mechanisms for investors. Strategy retains the right to redeem all outstanding STRD shares if the total number falls below 25% of the original issuance or if certain tax events occur. In such cases, holders would receive the liquidation preference of $100 per share plus any declared and unpaid dividends.

Additionally, if a “fundamental change” occurs under the certificate of designations governing the STRD stock, holders will have the right to require Strategy to repurchase some or all of their shares at the stated amount plus any accrued dividends.

Continued Bitcoin Accumulation Strategy

The announcement comes on the heels of Strategy’s latest Bitcoin acquisition. On June 2, the company purchased an additional 705 Bitcoin for approximately $75 million at an average price of $106,495 per coin between May 26 and June 1. This acquisition brought Strategy’s total Bitcoin holdings to 580,955 BTC, worth over $61.7 billion at current market prices.

The recent purchase was funded through the sale of $74.6 million worth of existing preferred shares, including 353,511 shares of STRK preferred stock for $36.2 million and 374,968 shares of STRF preferred stock for $38.4 million. With this latest acquisition, Strategy’s average cost basis across all Bitcoin holdings stands at $70,023 per coin.

Market Leadership Position

Strategy’s Bitcoin treasury strategy, orchestrated by executive chairman and co-founder Michael Saylor, has established the company as the undisputed leader in corporate Bitcoin adoption. According to BitcoinTreasuries.NET data, Strategy’s Bitcoin holdings are more than double that of the other 117 publicly traded Bitcoin-holding companies combined.

The $250 million STRD offering could potentially allow Strategy to purchase approximately 2,352 additional Bitcoin at current market prices of around $106,000 per coin, further cementing its position as the world’s largest corporate Bitcoin holder.

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Expanding Fundraising Arsenal

The STRD offering adds another tool to Strategy’s fundraising arsenal, which has primarily relied on issuing common stock and convertible notes to fund its Bitcoin acquisition strategy. The success of the company’s previous preferred stock offerings this year demonstrates strong investor appetite for Bitcoin-exposed securities with attractive dividend yields.

In March, Strategy increased the size of its Strike and Strife offerings from $500 million to $723 million within days of their announcement, highlighting robust demand for the company’s preferred shares.

Wall Street Support

The STRD offering will be managed by a consortium of prominent Wall Street banks, including Barclays, Morgan Stanley, Moelis & Company, and TD Securities. Several investment firms, including The Benchmark Company and AmeriVet Securities, will provide additional support for the offering.

The offering is being conducted under an effective shelf registration statement filed with the U.S. Securities and Exchange Commission, ensuring regulatory compliance and transparency.

Also Read: Michael Saylor’s Bitcoin Tracker Post Sparks Market Speculation as Strategy Purchase Signals Mount

Looking Forward

Strategy has indicated there is no specific target for the amount of Bitcoin it seeks to hold, stating it will continue to monitor market conditions to determine future accumulation and financing needs. The company views its Bitcoin holdings as long-term investments, positioning itself at the forefront of the corporate Bitcoin treasury movement.

However, Strategy acknowledges risks associated with its Bitcoin-heavy strategy, noting that a sharp decline in Bitcoin’s market value could impact its ability to meet financial obligations. The company also faces potential tax implications, as unrealized gains on its Bitcoin holdings could subject it to the corporate alternative minimum tax under the Inflation Reduction Act of 2022.

As Bitcoin continues trading around $106,000, Strategy’s aggressive accumulation strategy represents one of the most significant corporate bets on the future of digital assets, with the STRD offering providing another avenue for investors to gain exposure to Bitcoin through traditional equity markets.