Strategy—formerly known as MicroStrategy—is returning to the capital markets with a bold new equity issuance aimed at deepening its Bitcoin treasury. On Monday, the firm announced a $250 million public offering of its newest preferred equity instrument, the “10% Series A Perpetual Stride Preferred Stock” (STRD)—marking yet another move to align Wall Street tools with its crypto-first strategy.
The offering includes 2.5 million shares priced at $100 each, promising investors a 10% annual dividend yield, payable quarterly. The STRD shares will be listed on Nasdaq, continuing the company’s trend of raising fiat capital through traditional finance channels to fund its unconventional digital asset ambitions.
In its prospectus, Strategy noted that the proceeds will be used for “general corporate purposes,” with a clear emphasis on expanding its Bitcoin holdings and boosting working capital. As the largest corporate holder of BTC, the firm continues to blur the lines between legacy financial instruments and crypto-native strategies.
STRD Joins Strategy’s Growing Bitcoin-Backed Capital Stack
The STRD offering marks Strategy’s third preferred equity issuance in 2025, following STRK (“Strike”) and STRF (“Strife”). Both earlier rounds saw strong investor demand, with total fundraising surging from an initial $500 million to $723 million in a matter of days. These offerings represent a novel model: raising capital through traditional public markets to fund aggressive crypto accumulation.
The STRD shares include a 10% annual dividend, paid in cash each quarter starting September 30. However, dividends are non-cumulative—meaning missed payments are not owed retroactively, unlike most bond structures.
Preferred stock offers a hybrid financial model, combining features of both equity and debt. According to definitions by Fidelity, preferred shareholders typically receive priority dividend payments and liquidation rights ahead of common stockholders, but usually lack voting power. For Strategy, this allows it to raise capital without diluting control, while offering yield-hungry investors a vehicle tied to one of the most aggressive Bitcoin strategies in the public markets.
With these offerings, Strategy is effectively turning Wall Street into a Bitcoin war chest, demonstrating that traditional financial mechanisms still have a place in powering the digital asset economy.
Bitcoin Buys to Continue, But Risks Mount
Strategy now holds more than $61 billion in Bitcoin based on current market prices (~$106,000 per BTC). Yet the company shows no sign of slowing down. In the STRD prospectus, Strategy reiterated its intent to continue acquiring Bitcoin based on market conditions, emphasizing the absence of any fixed limit on accumulation.
However, the firm also acknowledged significant risks tied to its strategy. A sharp decline in Bitcoin’s price could jeopardize its ability to meet dividend or financing obligations, given that much of its balance sheet strength is based on BTC reserves.
In addition, Strategy flagged potential tax liabilities stemming from unrealized gains on its Bitcoin holdings. Under the Inflation Reduction Act of 2022, such unrealized profits could trigger exposure to the corporate alternative minimum tax—even if the assets remain unsold.
As the company continues to pioneer Bitcoin-based treasury management, it finds itself navigating not just volatile crypto markets, but also evolving tax rules and financial stress scenarios largely shaped by the scale of its own innovation.
Quick Facts
- Strategy launched a $250 million IPO of “10% Series A Perpetual Stride Preferred Stock” (STRD) on Nasdaq.
- The offering includes 2.5 million shares at $100 each, with a 10% annual dividend yield, paid quarterly.
- Proceeds will fund additional Bitcoin purchases and general corporate operations.
- Strategy now holds over $61 billion in BTC, making it the largest corporate holder of Bitcoin globally.
- The firm warned of market volatility and potential tax liabilities from unrealized crypto gains.
