Michael Saylor's Strategy to Raise $500M via Series A Perpetual Strife Stock with 10% Dividend for Bitcoin

MicroStrategy Inc., now operating under the name Strategy and led by Michael Saylor, has announced plans to raise $500 million through the issuance of 5 million shares of its Series A Perpetual Strife Preferred Stock (STRF). The company intends to use the proceeds for general corporate purposes, including the acquisition of more Bitcoin.

The STRF shares will have a fixed annual dividend rate of 10%, payable quarterly in cash starting June 30, 2025. Each share carries a $100 liquidation preference and does not include voting rights. If dividends are not paid as scheduled, they will compound at an additional 1% per year, up to a maximum rate of 18% per annum. Strategy retains the right to redeem the shares if certain conditions are met, such as if the number of outstanding shares falls below 25% of the total issued, as detailed in an SEC filing.

This move comes as Strategy continues to position itself as the world's largest corporate holder of Bitcoin, with recent purchases adding to its holdings. The offering is being managed by joint book-running managers Morgan Stanley, Barclays, Citigroup, and Moelis & Company, and is expected to trade on Nasdaq within 30 days of issuance.

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