Michael Saylor’s strategy announces initial public offering of 2500,000 shares
Today, Strategy (NASDAQ:MSTR; Strk; Strf) announced that it plans to 10.00% of its IPO strategy A Server A Serpetual Stride Stride Preferred shares 2,500,000 shares.
“The strategy intends to use the net proceeds from the issuance for general corporate purposes, including the acquisition of Bitcoin and working capital,” the company said in the announcement.
STRD shares will provide non-accumulated cash dividends at a tax rate of 10% per year, with annual default payments on March 31, September 30 and December 31 each year, starting from September 30, 2025.
If the total is less than 25% of the original offering or some tax event occurs, the strategy may be able to redeem all outstanding shares. In this case, the holder will receive a liquidation preference of $100 per share, as well as any stated and unpaid dividends.
The company stated, “if an event that constitutes a “fundamental change” under the certificate of designations governing the STRD Stock occurs, then, holders of the STRD Stock will have the right to require Strategy to repurchase some or all of their shares of STRD Stock at a cash repurchase price equal to the stated amount of the STRD Stock to be repurchased, plus declared and unpaid regular dividends, if any, that will have accrued to, but excluding basic change of repo date. ”
Similarly, today, Strategy (MSTR) has acquired another 705 bitcoins for about $75 million, and its position as the largest company holder of Bitcoin has further expanded as more public companies continue to adopt the Bitcoin treasury strategy.
According to the June 2 SEC filing, they increased their total holdings to 580,955 BTC at an average price of $106,495 between May 26 and June 1. The acquisition is funded by the sale of some of its preferred shares in the market (ATM) equity products.
The company raised $74.6 million by selling its portfolio of preferred shares, including 353,511 shares of Srk preferred shares, $36.2 million and 374,968 shares of Strf preferred shares, $38.4 million. With this purchase, the strategy’s average acquisition price in all its Bitcoin holdings is $70,023 per coin.
