According to BlockBeats, Strategy has announced the completion of its initial public offering (IPO) pricing for 10.00% Series A perpetual Stride preferred stock, known as STRD stock, on June 5, 2025. The total issuance amounts to 11,764,700 shares, with a public offering price of $85.00 per share. The settlement of this issuance is expected to occur on June 10, 2025, subject to customary delivery conditions.
Strategy anticipates net proceeds of approximately $979.7 million from this offering, after deducting underwriting discounts, commissions, and estimated offering expenses. The company plans to use these funds for general corporate purposes, including the purchase of Bitcoin and working capital.
Dividends on STRD stock are not mandatory. Shareholders are entitled to non-cumulative dividends at an annual rate of 10.00% only if formally declared by the company's board of directors or an authorized committee. If declared, regular quarterly dividends will be distributed on March 31, June 30, September 30, and December 31 each year, with the first dividend date set for September 30, 2025.
Due to the non-cumulative nature of the dividends, if a dividend is not declared for a particular quarter, the company is not obligated to pay any dividends for that quarter, and there will be no interest or accumulation on unpaid dividends, regardless of future payments. Any declared regular dividends will be paid in cash, with specific terms and conditions outlined in the prospectus.
