Strategy (MSTR) has officially launched trading of its third “bitcoin-backed preferred stock”, STRD, on the Nasdaq, with shares making their debut on Wednesday. ****
The new security, formally named the 10% Series A Perpetual Stride Preferred Stock (STRD), closed the day slightly higher, gaining 0.24%.
STRD offers a fixed 10% annual dividend, making it the highest-yielding instrument among Strategy’s capital offerings, which also include STRF and STRK. Unlike those, STRD is non-convertible and non-cumulative, meaning dividends are paid only when declared by the board and do not accrue if missed.
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Despite this added risk, the product is positioned to attract long-term investors seeking strong yield with no management fees.
Strategy aims to raise nearly $1 billion through the offering by selling 11.76 million shares at $85 each. Net proceeds are expected to total around $979.7 million after fees and expenses. According to the company, the funds will be used for general corporate purposes, and further accumulation of bitcoin.
Investor interest appears strong, including from inside the company. Board member Jarrod Patten disclosed the purchase of 5,000 STRD shares. Patten already holds 28,000 shares of MSTR Class A common stock and 10,000 shares of STRF, another preferred security issued by the company.
Read more:Strategy Shifts Capital Raise to Preferred Stocks as Common Share Issuance Loses Allure
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