Strategy upsizes STRD perpetual preferred stock offering to $1 billion to buy more bitcoin

Bitcoin treasury company Strategy, formerly MicroStrategy, announced the pricing of its STRD offering on Friday, upsizing the deal from $250 million to $1 billion.

Strategy will offer 11,764,700 shares of its 10% Series A Perpetual Stride Preferred Stock at $85.00 per share, according to a statement, with the sale set to close on June 10, pending customary closing conditions. The proposed offering was initially announced on Monday.

The company estimates that net proceeds from the offering will be approximately $979.7 million after deducting underwriting discounts, commissions, and other expenses. Strategy said it will use the net proceeds for general corporate purposes, including bitcoin purchases and working capital.

The company has also launched offerings for its other preferred shares, Strike (STRK) and Strife (STRF), alongside its "42/42" plan to raise $84 billion — split evenly between equity and debt — to fund future bitcoin purchases. STRK is a convertible preferred stock offering a fixed 8% annual dividend, while STRF is non-convertible and offers a 10% fixed cumulative annual dividend. STRD offers a fixed 10% non-cumulative annual dividend and is non-convertible. However, dividends on shares of the STRD stock will not be mandatory, the company said.

Perpetual preferred shares, unlike bonds, have no maturity date or required redemption schedule. Instead, they offer fixed dividend payments for as long as the issuing company continues to operate.

Strategy tapped major financial institutions, including Morgan Stanley, Barclays, and TD Securities, as joint book-running managers for the STRD offering.

Softening pace of Strategy's bitcoin buys

On Monday, Strategy announced it had acquired an additional 705 BTC for approximately $75.1 million at an average price of $106,495 per bitcoin between May 26 and June 1 using proceeds from ATM sales of STRK and STRF.

Strategy now holds a total of 580,955 BTC — worth over $60 billion — bought at an average price of $70,023 per bitcoin for a total cost of around $40.7 billion, including fees and expenses, according to the company's co-founder and executive chairman, Michael Saylor. That's the equivalent of around 2.8% of bitcoin's total 21 million supply and implies around $19.3 billion of paper gains.

Last week, analysts at K33 noted the softening pace of Strategy's bitcoin buys, attributing it to a sharp decline in MSTR's premium to bitcoin holdings, potentially forcing the firm into more moderate ATM raises, as well as the plethora of new bitcoin treasury initiatives increasing competition in the BTC accumulation race.

Strategy previously acquired an additional 4,020 BTC for approximately $427.1 million at an average price of $106,237 per bitcoin between May 19 and May 25, meaning that pace has slowed further still.

Strategy's MSTR shares are up 1.5% in pre-market trading on June 6, according to .

Earlier on Friday, fellow corporate bitcoin accumulator Metaplanet announced a $5.4 billion equity raise plan to buy more bitcoin.

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