Strategy (Mstr), the largest business owner of Bitcoin
has priced the new preferred stock offer designed to give long -term investors a fixed 10% annual return without management fees.
The company will sell 11.76 million shares in its 10% Serie A -Series A -stride Preferred Stock (Strd) and expects to bring in an estimated $ 979.7 million after fees and expenses, according to a press release.
The shares that sit under the other preferred offers of the strategy are struck and stred are set to settle on June 10th. Unlike STRF, which has senior status and lower volatility, and strk, which is convertible and pays 8%, strd offers the highest yield among the strategy’s capital products while more risky.
It comes with a non-cumulative yield, which means that unanswered payments do not incur and dividends will only be paid when declared by the board.
Strd is designed to appeal to investors who are looking for high -yield opportunities. The shares are non-recommended under normal conditions, with redemption clauses that only kick in during certain tax events or structural shifts in the company, the release reads.
Strategy says the revenue from the supply will be used for general business purposes that include the acquisition of additional Bitcoin.
The company’s shares have increased by 1.7% in trading before the market to $ 375.
Read more: Strategy extends Capital Stack with launch of Strd shares with high dividends
