WIN BITCOIN
Strategy announced today it has entered a $4.2 billion sales agreement with TD Securities, Barclays, Morgan Stanley, Benchmark Company, and Clear Street to sell additional shares of its Variable Rate Series A Perpetual Stretch Preferred Stock to purchase additional Bitcoin.
The shares will be sold gradually through at-the-market (ATM) offerings or negotiated transactions. The banks will act as sales agents and receive up to 2 percent of the gross proceeds from any sale. None of the firms are obligated to sell a specific amount.
“We view our bitcoin holdings as long-term holdings and expect to continue to accumulate bitcoin,” Strategy stated. “We have not set any specific target for the amount of bitcoin we seek to hold, and we will continue to monitor market conditions in determining whether to engage in additional financings to purchase additional bitcoin.”
Each share carries a $100 liquidation preference and pays cumulative monthly dividends. The initial dividend rate is set at 9.00 percent annually, beginning July 29, 2025. STRC has the ability to adjust this rate within certain limits to help maintain the stock price near $100.
“The dividend rate may be fixed or variable or both,” the document mentioned. “The dividend rate may vary based on the price of bitcoin, the ratio of bitcoin we hold compared to our outstanding indebtedness or other reference metrics tied to the price of bitcoin or our holdings of bitcoin.”
The company may redeem shares at $101 plus any unpaid dividends, as long as at least $250 million worth of shares remain outstanding. It also holds the right to redeem all shares if the total number falls below 25 percent of the combined initial and future offerings, or if a tax-related event occurs. Shareholders may require STRC to repurchase their shares at face value plus dividends if a fundamental change takes place.
“We intend to use the net proceeds from this offering for general corporate purposes, including the acquisition of bitcoin and for working capital, and may also use the net proceeds for the payment of cash dividends declared or expected to be declared by the board of directors from time to time on shares of any class or series of our preferred stock, other than the STRC Stock, then outstanding,” the company mentioned.
