On March 18, according to the official announcement of Strategy (formerly MicroStrategy), it will issue 5 million shares of Series A Perpetual Strife Preferred Stock with a face value of $100 per share, and it will obtain an additional $500 million for implementing the BTC strategy. The Series A Perpetual Strife Preferred Stock will accrue dividends at a fixed Interest Rate of 10.00% per annum. When declared by the board of directors of Strategy and paid from legally available funds, the regular dividends of the perpetual preferred stock will be paid quarterly on March 31, June 30, September 30, and December 31 each year, with the initial date being June 30, 2025. The declared regular dividends will be paid only in cash. If any accrued regular dividends are not paid on the applicable regular dividend payment date, additional regular dividends ("compound interest dividends") will accrue on the unpaid amount of regular dividends, compounded quarterly. The compound interest rate applies to any unpaid regular dividends due on the regular dividend payment date, initially at an Interest Rate of 10% per annum plus 100 basis points; however, before the payment of the aforementioned regular dividends and their compound interest dividends, the compound interest rate will increase by 100 basis points annually until the maximum annual dividend rate is 18%.
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The addition of preferred shares to the Strategy will bring in an additional $500 million in funds.
On March 18, according to the official announcement of Strategy (formerly MicroStrategy), it will issue 5 million shares of Series A Perpetual Strife Preferred Stock with a face value of $100 per share, and it will obtain an additional $500 million for implementing the BTC strategy. The Series A Perpetual Strife Preferred Stock will accrue dividends at a fixed Interest Rate of 10.00% per annum. When declared by the board of directors of Strategy and paid from legally available funds, the regular dividends of the perpetual preferred stock will be paid quarterly on March 31, June 30, September 30, and December 31 each year, with the initial date being June 30, 2025. The declared regular dividends will be paid only in cash. If any accrued regular dividends are not paid on the applicable regular dividend payment date, additional regular dividends ("compound interest dividends") will accrue on the unpaid amount of regular dividends, compounded quarterly. The compound interest rate applies to any unpaid regular dividends due on the regular dividend payment date, initially at an Interest Rate of 10% per annum plus 100 basis points; however, before the payment of the aforementioned regular dividends and their compound interest dividends, the compound interest rate will increase by 100 basis points annually until the maximum annual dividend rate is 18%.