TLDR
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Strategy Launches $4.2B STRD Preferred Stock to Fuel Bitcoin Expansion
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STRD Stock Offers 10% Yield as Strategy Doubles Down on Bitcoin Holdings
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Strategy Eyes Bitcoin Growth with $4.2B High-Yield STRD Stock Program
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STRD Launch Boosts Strategy’s Capital Flexibility for Bitcoin Investment
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Bitcoin Surge Powers Strategy’s Q2; STRD Stock Targets Yield Seekers
Strategy, formerly MicroStrategy, has launched a $4.2 billion preferred stock offering to boost its Bitcoin reserves. The offering features a 10% Series A Perpetual Stride Preferred Stock (STRD) issued under an at-the-market (ATM) program. The company aims to raise funds over time and allocate capital strategically toward Bitcoin acquisitions and corporate operations.
STRD Preferred Stock Targets Market Flexibility and Yield Demand
Strategy initiated the STRD stock sales on June 11 through its ATM structure, allowing gradual sales based on market demand. This flexible issuance lets the company raise capital without the limitations of traditional one-time offerings. The STRD shares have already gained 6% since launch, signaling early market interest.
Each STRD share carries a 10% annual dividend rate, paid if declared, although dividends are non-cumulative and not guaranteed to be paid. Based on the $85 issue price, the effective yield stands at 11.76%, positioning it to attract yield-focused buyers. While the structure omits dividend guarantees, it supports the Strategy’s operational flexibility and continued accumulation of Bitcoin.
The proceeds are allocated toward three main goals: Bitcoin purchases, working capital needs and liquidity for existing and future STRD or STRK shareholders. The company emphasized that dividend payments will depend on board decisions and business conditions. This capital structure aligns with Strategy’s dual identity as a technology and digital asset enterprise.
Bitcoin Gains Boost Q2 While Strategy Seeks More
Strategy’s second quarter closed with over 500,000 Bitcoin in holdings and a $14.05 billion unrealized gain. The gain follows Bitcoin’s price surge from $82,000 to $108,000 during the quarter ending June 30. The company attributed the financial boost to the adoption of Accounting Standards Update No. 2023-08, which recognizes fair value changes.
The new accounting method enabled Strategy to report market-based gains, diverging from earlier impairment-only rules. Alongside the gains, the company recorded a $4.04 billion deferred tax expense and now carries a $6.31 billion tax liability. Strategy’s common shares (MSTR) declined 2.72% to $401 as Bitcoin slightly dropped.
The strategy continues to prioritize Bitcoin growth through capital market activity. During the quarter, it raised $6.8 billion from a mix of equity and preferred offerings. The firm retains $40.5 billion in total ATM capacity across three active stock programs 2025 Common ATM, STRK ATM, and STRF ATM.
ATM Program Underscores Long-Term Digital Asset Strategy
The $4.2 billion STRD program reflects Strategy’s confidence in Bitcoin as a core corporate reserve asset. The company plans to deploy funds based on trading volume, pricing, and market conditions over time. This dynamic approach enhances the company’s ability to respond to shifts in investor appetite and capital needs.
Strategy positions itself as a unique blend of enterprise software and digital asset leadership through its ongoing Bitcoin accumulation strategy. It continues to leverage high-yield offerings to fund growth without relying on debt-heavy instruments. The ATM format ensures efficiency while reducing market disruption.
STRD’s structure aims to appeal to those seeking higher yield with crypto exposure. Strategy’s disciplined financial model supports both long-term Bitcoin positioning and short-term operational requirements. The company remains focused on scaling its presence as a primary Bitcoin holder through well-structured financial initiatives.
