Strategy launches 5 million perpetual preferential shares to finance future Bitcoin purchases

Strategy, the world's largest Bitcoin holding company, has just announced the launch of STRF (Strife) - a new perpetual preferred stock, designed specifically for institutional investors and selected individual investors.

At the same time, the company also revealed plans to issue 5 million perpetual preferred Series A Strife shares in a public offering to raise funds for the purchase of Bitcoin and meet liquidity needs.

Details about STRF preferred stock:

• Annual fixed dividend rate: 10%, paid quarterly, starting from 30/06/2025.
• Cumulative dividends: If not paid on time, dividends will be accumulated with an initial interest rate of 11% per year, and increase by an additional 100 basis points (1%) each quarter, up to a maximum of 18% per year until fully paid.
• Initial liquidation priority value: 100 USD per share, adjusted daily based on market price and trading activities.
• Repurchase right: The Strategy has the right to repurchase all shares if the number of outstanding shares falls below 25% of the total number of shares issued or when certain tax events occur.

Morgan Stanley, Barclays Capital, Citigroup Global Markets, and Moelis & Company will serve as the lead managers for this offering, conducted through the registration statement filed with the SEC (Securities and Exchange Commission) approval.

Strategy for buying more Bitcoin and expanding investment portfolio

On Monday, Strategy announced that it had purchased an additional 130 Bitcoin at an average price of 82,981 USD/BTC between March 10 and 16.

According to the filing with the SEC, this transaction has increased the total amount of Bitcoin held by Strategy to 499,226 BTC, worth approximately 41.6 billion USD.

This investment is funded by selling 123,000 perpetual preferred Series A shares with an interest rate of 8.00%, raising about 10.7 million USD.

As of now, Strategy holds more than 2% of the total global Bitcoin supply, solidifying its position as the largest Bitcoin-holding organization in the world.

*Disclaimer: This article is for informational purposes only, not investment advice. Investors should do their research before making decisions. We are not responsible for your investment decisions.

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