MicroStrategy (Strategy) has announced an initial public offering of 5 million STRC shares. The proceeds from the offering will be used for the company's general purposes, including the purchase of Bitcoin.
This new type of stock, expected to be traded on Nasdaq under the ticker STRC, will be registered under the Securities Act of 1933. The proceeds from the IPO will be used for the company's general purposes, including purchasing Bitcoin and funding working capital.
The company announces that each STRC share will have a par value of $100 and will pay an initial annual dividend of 9%. Dividends will be paid retroactively in cash on the last day of each month, subject to the approval of the company's board of directors. The first dividend payment will be made on August 31, 2025.
The strategy has the right to change the dividend rate in the future. However, these changes will be subject to certain restrictions. The company may reduce the dividend rate by a maximum of 25 basis points from the previous period, plus an additional percentage calculated based on specific market conditions. Furthermore, the new rate must not be lower than the one-month SOFR interest rate on certain days.
The company's strategy is to adjust the dividend rate to keep the market price of STRC shares close to the par value of $100. Moreover, if accumulated dividends have not yet been paid, they will incur 'cumulative dividends', meaning interest will be calculated monthly.