Strategy Inc. has announced an initial public offering (IPO) of five million shares of its variable-rate Series A perpetual stretch preferred stock (STRC shares). The proceeds from this offering are intended to support the company’s general corporate purposes, with a particular focus on acquiring additional Bitcoin holdings and bolstering working capital. This move aligns with Strategy’s broader investment approach aimed at expanding its Bitcoin ownership while maintaining flexibility in dividend payments.
The STRC shares are expected to pay monthly dividends, commencing at an annual rate of 9%, subject to adjustment based on prevailing market interest rates. The company plans to manage dividend rates carefully to maintain the share price close to $100. Dividends will be paid in cash, and any unpaid dividends will accrue compounded monthly interest. Furthermore, Strategy reserves the right to repurchase STRC shares at $101 per share following a listing on NASDAQ or NYSE, with redemption opportunities available under certain specified conditions. In the event of a fundamental change, shareholders may request the company to redeem their STRC shares at $100 per share plus any accumulated dividends.
The offering is being led by an underwriting syndicate including Morgan Stanley, Barclays, Moelis & Company, and TD Securities. Additional co-managers are Benchmark Company, Clear Street, AmeriVet Securities, Bancroft Capital, and Kieve, Brody & Woods.
In a recent update, Strategy disclosed that between July 14 and July 20, it acquired approximately 6,220 Bitcoins, bringing its total Bitcoin holdings to 607,770 coins, valued at around $74.1 billion. This acquisition reinforces Strategy’s commitment to strengthening its Bitcoin investment portfolio and solidifying its position within the financial markets.
Source: bitcoinmagazine
