Strategy (ticker MSTR) announced on Monday afternoon that it has newly debuted its fourth set of perpetual preferred stock as a corporate Bitcoin treasury pioneer.
According to The Block on the 21st (local time), the company, previously known as MicroStrategy, announced that it plans to issue 5 million shares of Strategy's Variable Rate Series A Perpetual Stretch Preferred Stock, also known as "STRC" stock, through a public offering registered under the 1933 Securities Act.
Strategy plans to use the net proceeds from the offering for general corporate purposes, including Bitcoin acquisitions and working capital.
Early Monday, Strategy announced that it acquired 6,220 Bitcoins for $739.8 million, increasing its total holdings to 607,770 BTC.
According to the announcement, STRC stock will accumulate cumulative dividends at a variable annual rate for every $100 of specified amount. Regular dividends for STRC will be payable monthly in arrears on the last day of each month starting from August 31st, from legally available funds when declared by the Strategy board of directors or a duly authorized committee. The initial monthly dividend rate will be 9% per annum.
Perpetual preferred stock has no maturity date but provides fixed dividend payments as long as the company continues to operate. Strike (STRK) is convertible with an 8% fixed dividend, Stripe (STRF) provides a 10% fixed cumulative non-convertible dividend, and Stride (STRD) offers a fixed 10% non-cumulative annual dividend and is non-convertible.
These programs are added to the "42/42" plan, which aims to raise a total of $84 billion in capital through stock offerings and convertible bonds for Bitcoin acquisitions by 2027.
Strategy has been finding new ways to fund Bitcoin accumulation by offering various preferred stocks in recent months. According to TD Cowen, these securities provide "attractive yields and price appreciation potential with less expected volatility than common stock or underlying Bitcoin".
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