Daniel Walker
Strategy, the leading public company in terms of Bitcoin ownership, announced plans on Monday to issue 2.5 million shares of a new perpetual preferred stock named Stride (STRD). The goal? To continue its aggressive approach toward expanding its bitcoin reserves.
In an official statement, the company confirmed that proceeds from the STRD share sale will be used for general corporate purposes, including further bitcoin acquisitions and working capital needs.
The newly announced STRD offering will be made available to institutional buyers and select non-institutional participants, according to Strategy.
This initiative follows a series of preferred share issuances, including the previously launched Strike (STRK) and Strife (STRF) shares. These offerings are part of a broader $84 billion funding strategy, evenly split between equity and debt, designed to fund continued bitcoin accumulation.
Innovative Financial Instruments With Attractive Yields
Both STRD and STRF deliver a 10% annual dividend, while STRK offers an even higher yield of 13%. Unlike convertible shares, STRD shares cannot be converted into common stock, providing a consistent income stream without dilution risk.
“STRD shareholders will receive non-cumulative dividends at an annual rate of 10.00% on the stated value,” the company stated, reinforcing the stock’s appeal as a long-term income-generating asset.
Michael Saylor, Strategy’s co-founder and executive chairman, previously described STRK and STRF as “the first AI-designed securities,” highlighting the company’s push to innovate both in crypto and financial markets.
Perpetual Preferred Stock: A Strategic Long-Term Financing Tool
Unlike traditional bonds, perpetual preferred shares have no maturity date, offering fixed dividends indefinitely as long as the company remains operational. This structure provides Strategy with flexible, long-term capital — a perfect fit for its ongoing Bitcoin acquisition model.
Strategy’s Bitcoin Treasury Continues to Grow
Following its most recent purchase, Strategy now holds a staggering 580,955 BTC, valued at over $60 billion. This aggressive treasury strategy has inspired a wave of corporate bitcoin adoption, as more companies look to follow in Strategy’s footsteps.
The success of this approach has also helped push Strategy’s stock to more than double in value over the past year, reinforcing confidence in its Bitcoin-focused model.
Redemption Terms Offer Strategy Control and Flexibility
In its Monday release, Strategy also clarified conditions under which it may redeem the STRD shares.
The company reserves the right to fully redeem all STRD shares if the number of shares in circulation drops below 25% of the total originally issued, whether through this offering or any future issuance. Additionally, specific tax-related events could also trigger full redemption, offering Strategy strategic flexibility over its capital structure.
