Strategy Seeks Funds Through STRD Stock to Strengthen Bitcoin Holdings
Strategy has announced plans to offer a new series of preferred shares, known as STRD Stock, as it looks to raise additional capital for business operations and its growing Bitcoin position. The offer will include 2.5 million shares and will proceed depending on market interest and regulatory clearance.
The company outlined that the proceeds would support general corporate use, with a focus on increasing its Bitcoin reserves and covering everyday financial needs. The shares will be offered under a registered public offering as per U.S. securities laws, ensuring transparency for potential investors.
Image 1: Strategy (Source: CoinCentral)
Fixed Yield with Company Control
The STRD Stock will carry a fixed annual return of 10%. However, Strategy will only pay this return if its board approves it. This means the payments are discretionary and not legally required. If approved, the distribution will be made every three months in cash, with the first set for the end of September 2025.
These payments will not accumulate if missed. If the company skips one, investors will not receive it later. This structure gives Strategy more flexibility in managing its cash flow while still offering the potential for returns to investors.
Each share is being introduced with an initial redemption value of $100. If the shares begin trading publicly, this value could be adjusted upwards based on recent sale prices or average market performance. This approach ensures the company reflects the market’s view of STRD Stock in its valuation.
Strategy today announced the launch of $STRD (“Stride”), a new perpetual preferred stock offering, available to institutional investors and select non-institutional investors. For more information, click here. $MSTR https://t.co/D2Wy9M2bqa
— Michael Saylor (@saylor) June 2, 2025
Conditions for Buyback and Liquidity Terms
Strategy has included specific conditions where it may buy back the STRD shares. If the total number of outstanding shares drops below 25% of the original amount, the company can choose to repurchase all remaining units. This option also applies in cases where tax changes make the structure less viable.
In such events, holders would receive $100 per share along with any declared but unpaid dividends. However, unpaid amounts that were not approved by the board are not recoverable. The same conditions apply if a major corporate change occurs, such as a takeover or reorganisation. In these cases, shareholders would have the right to return their shares to the company.
The offering is being coordinated by major financial institutions. Barclays, Morgan Stanley, Moelis & Company, and TD Securities are leading the effort. Other firms, including The Benchmark Company, BTIG, and AmeriVet Securities, are also involved in supporting the transaction.
Image 2: Strategy (Source: Bitbo)
Bitcoin Remains the Core Focus
This move comes shortly after Strategy added another 705 Bitcoin to its portfolio, costing the firm approximately $75.1 million at an average price of $106,495 per coin. By early June, Strategy reported holding over 580,000 Bitcoin, purchased at an average cost of around $70,000 each.
According to the company, its return on Bitcoin for the year so far stands at nearly 17%. This reflects Strategy’s continued belief in the long-term strength of Bitcoin and its decision to place the asset at the centre of its financial model.
The STRD Stock offering adds another layer to the company’s capital strategy. While it gives investors a possible return, it also helps fund Strategy’s efforts to build and maintain one of the largest corporate Bitcoin reserves in the world.
Overall, the new preferred shares represent a structured way for Strategy to bring in new funds without issuing ordinary shares. It also offers a mechanism to adjust to market demand while keeping investor expectations clear.
The development offering highlights growing corporate confidence in Bitcoin as a long-term store of value. It also signals a maturing crypto market where traditional financial tools are now being used to fund digital asset strategies.
