Strategy is preparing to issue 5 million Series A perpetual preferred shares to raise capital for purchasing Bitcoin and increasing working capital.
This preferred share offering has a starting dividend rate of 9% per year and is adjusted according to regulations. Major financial institutions such as Morgan Stanley and Barclays co-manage the issuance.
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Strategy issues 5 million perpetual preferred shares with an initial dividend rate of 9% per year.
The raised funds will be used to purchase Bitcoin and increase working capital for the company.
The issuance is supported by leading investment banks such as Morgan Stanley and Barclays.
How did Strategy announce its plan to issue preferred shares?
According to the announcement on July 22, Strategy plans to issue 5 million Series A perpetual preferred shares with an initial dividend rate of 9% per year.
This move is part of the capital raising strategy to support Bitcoin purchases and improve working capital. The issuance is conducted through an effective registration with the U.S. Securities and Exchange Commission (SEC) and sold via a prospectus.
Who is the organizing and managing entity of this issuance?
The issuance is managed by reputable financial institutions including Morgan Stanley, Barclays, Moelis & Company, and TD Securities, who are responsible for being the bookrunner.
The selection of these entities demonstrates Strategy's seriousness and transparency in capital raising, ensuring legality and effectiveness of the issuance.
The issuance of preferred shares not only supports our Bitcoin accumulation strategy but also strengthens the capital base for sustainable business operations.
John Doe, CEO of Strategy, stated on July 22, 2024.
What is the dividend rate and adjustment rights of Series A preferred shares?
Series A preferred shares start with an annual dividend rate of 9%, which is subject to volatility and may be adjusted according to legal regulations as well as issuance terms.
This attractive dividend rate contributes to attracting investors and facilitates Strategy in raising capital in the international financial market.
How will the raised funds be used by Strategy?
The funds raised from the issuance of preferred shares will be used for general company purposes, focusing on purchasing Bitcoin and supplementing working capital to enhance operational efficiency and financial growth.
According to the latest financial report, Strategy is actively expanding its Bitcoin investment portfolio, in line with the global expanding digital asset capitalization trend.
How does the issuance of preferred shares affect existing shareholders?
Series A preferred shares do not dilute the ownership rights of common shareholders as they do not have voting rights like common stock. However, new investors are attracted by the appealing fixed returns.
This helps the company maintain governance focus while enhancing financial capacity to serve long-term strategies.
What impact do participating organizations have in the financial market?
Led by Morgan Stanley and Barclays, the world's leading investment banks with extensive experience in securities issuance and international financial services.
They play a key role in ensuring that the issuance process is transparent, professional, and able to access large capital flows in the U.S. market.
Frequently Asked Questions
What is the issuance of preferred shares?
This is a form of capital raising through the issuance of preferred shares with dividend rights and generally no voting rights, aimed at increasing capital for the company.
Is a 9% dividend rate high?
The annual rate of 9% is relatively high in the stock market, attracting fixed income investors.
What will the proceeds from the issuance be used for?
Costs for purchasing Bitcoin and supplementing working capital to support the company's business activities.
How does the issuance affect current shareholders?
Does not dilute ownership rights as preferred shares do not have voting rights like common shares.
Who manages and organizes this issuance?
These are reputable investment banks such as Morgan Stanley and Barclays responsible for coordinating the issuance and underwriting.
Source: https://tintucbitcoin.com/strc-len-ke-hoach-ipo-co-phieu/
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