Strategy Launches $980M STRD Preferred Stock Offering With 10% Yield, Targets Bitcoin Expansion

Strategy (MSTR), the largest corporate holder of Bitcoin (BTC), has announced the pricing of a new high-yield preferred stock offering aimed at long-term investors. The product, known as the 10% Series A Perpetual Stride Preferred Stock (STRD), is designed to deliver a fixed 10% annual return with zero management fees.

According to a company press release, Strategy plans to sell 11.76 million STRD shares, raising an estimated $979.7 million after deducting fees and expenses. The offering is expected to settle on June 10.

Highest Yield, Higher Risk

STRD represents the highest-yielding product among Strategy’s capital instruments. However, it carries higher risk, ranking junior to the firm’s existing preferred stock offerings:

• STRF: Senior status, lower volatility
• STRK: Convertible preferred stock with an 8% yield
• STRD: Highest yield at 10%, but junior and riskier

The STRD dividend is non-cumulative, meaning if the board chooses not to declare a dividend in any given period, those payments will not accumulate or be owed in the future.

In addition, STRD shares are non-callable under ordinary circumstances, with redemption allowed only in specific situations such as regulatory tax events or material changes to Strategy’s corporate structure.

Use of Proceeds: More Bitcoin

Strategy confirmed that the funds raised will be used for general corporate purposes, with a focus on purchasing additional Bitcoin — further reinforcing its aggressive digital asset accumulation strategy.

Shares of Strategy rose 1.7% in pre-market trading, climbing to $375, reflecting investor confidence in the capital raise and its BTC-linked use case.