Strategy issues another 2.5 million shares of preferred stock "Stride", and the market value of its Bitcoin holdings exceeds US$60 billion

US technology company Strategy (formerly MicroStrategy, NASDAQ code: MSTR) recently announced that it will issue 2.5 million shares of Series A perpetual preferred stock "Stride" (stock code: STRD) with an annual interest rate of 10% to institutional and some non-institutional investors to raise funds for the purchase of Bitcoin and general operating purposes. The STRD preferred stock issued this time cannot be converted into common stock and has no expiration date. Dividends will be paid quarterly starting from September 30, 2025, provided that they are announced by the company's board of directors.

According to the company's announcement, the liquidation preference of STRD preferred stock was initially set at $100 per share, and shareholders have the right to require the company to repurchase their shares at the specified amount plus any declared but unpaid dividends when a "fundamental change" occurs. In addition, Strategy reserves the right to redeem all outstanding STRD shares in cash under certain conditions, including when the total number of outstanding shares is reduced to less than 25% of the initial issuance, or under certain tax circumstances.

The offering is book-managed by a number of financial institutions, including Barclays, Morgan Stanley, Moelis & Company and TD Securities, with additional support from co-managers including The Benchmark Company. The offering is being conducted through an effective shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC), and the relevant securities will be offered through a prospectus supplement and an accompanying prospectus.

Strategy has previously issued 13% yielding "Strike" (STRK) and 10% "Strife" (STRF) preferred shares to support its Bitcoin investment strategy. As of early June 2025, Strategy holds approximately 580,955 Bitcoins, with a total value of more than $60 billion, and an average purchase price of approximately $70,023 per Bitcoin. The company has raised funds through the issuance of stocks, bonds and preferred stocks to continuously increase its Bitcoin holdings.

Strategy's stock price is closely correlated with the price of Bitcoin, and its stock price has risen 118% over the past year. The company's executive chairman, Michael Saylor, said he will continue to increase his holdings of Bitcoin during market pullbacks, emphasizing his long-term confidence in the asset.