Strategy prepares sale of US$ 4,2 billion in STRD to buy bitcoin
2025/07/07 15:30- Strategy to issue $4,2 billion in STRD shares
- Company intends to use funds to buy more bitcoin
- Sale will be gradual via market ATM program
Strategy, formerly known as MicroStrategy, announced a plan to raise up to $4,2 billion by issuing Series A STRD perpetual preferred stock, which will yield 10% per year. The sale will occur through an at-the-market (ATM) program, allowing the company to execute transactions as market conditions dictate.
According to official statement disclosed on Monday, the funds raised will be used for various corporate purposes, with emphasis on the acquisition of bitcoin and reinforcement of working capital. The company may also direct part of the amount to the payment of dividends on its preferred shares STRD and STRK, the latter with a yield of 8%.
The issuance strategy will be conducted in a staggered manner, considering the market price of STRD shares and the volume traded in each session. Operations may occur either through common sales or through block transactions, depending on the demand of institutional or strategic investors.
STRD shares, launched as part of the company's restructuring of its bitcoin-based model, offer fixed, non-cumulative dividends, meaning that payments do not accumulate if they are suspended for a certain period. Still, they represent an attractive way to raise capital to enable new purchases of the digital asset.
With this new move, Strategy reinforces its position in the market as one of the largest corporate holders of bitcoin in the world. The company has been financing previous BTC purchases with different classes of shares and convertible notes, including through MSTR common shares and STRK and STRF preferred shares.
The issuance of STRD preferred shares is part of the company's strategy of maintaining liquidity available to increase its bitcoin reserve, while structuring sustainable financing alternatives. The model allows the company to take advantage of market interest in its financial products, without directly resorting to the sale of crypto assets already acquired.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
More Than Just Rumors! SpaceX (SPCX.US) and Tesla (TSLA.US) Begin Merger Talks as Musk Bets on AI Super Synergy
Elon Musk stated that both SpaceX and Tesla have established special committees to discuss merger matters. His response that "merger is a good idea" publicly supports this concept, which could potentially create one of the world's most valuable companies.
Ken Griffin explains "AI crash" in detail: computing power is similar to aviation, three major traps—"marginal pricing", "depreciation period" and "corporate budgets"
Ken Griffin, founder of Citadel, believes there are three major potential pitfalls in AI computing power investment: GPUs and airlines share similar structures—once supply exceeds demand, marginal prices will plummet; the high rental premium for outdated GPUs is unsustainable, and investment firms' 7-to-9-year depreciation models are facing revaluation; enterprise AI spending has shifted from trial and error to precise ROI calculations, aiming to save costs wherever possible, which conflicts with the massive capital expenditures of tech giants.
Reuters Survey: Bank of Japan Expected to Raise Interest Rates to 1.50% in December and Maintain Quarterly Rate Hikes
A Reuters survey shows that most economists expect the Bank of Japan to raise interest rates to 1.50% in December, following rate hikes in June and September and continuing a rapid quarterly hike pace in this tightening cycle—which initially saw the Bank of Japan increase rates only once a year.
AI infrastructure enters the "calculation stage"! The market no longer only looks at capital expenditure; cash flow and investment returns have become new challenges.
The overall sentiment in the market toward AI investment trading is undergoing a broader shift, and investors may be scrutinizing ambitious expansion plans and their paths to profitability more rigorously.
Crypto prices
More
