Strategy's new perpetual preferred stock STRD launches via IPO

Strategy launched a new type of preferred shares, the third new asset to be added to the company’s financing tools. STRD will offer exposure to BTC for private investors, to be sold to selected buyers in an IPO. 

Strategy announced STRD, a new perpetual preferred stock, which will be sold to selected investors in an IPO. The new shares will be part of the financing tools for additional BTC acquisitions. 

BREAKING: Strategy launches $STRD, its third preferred stock this year.

Offering a 10% perpetual dividend and 6× Bitcoin backing—via IPO to select investors. pic.twitter.com/kSG6s6Oh52

— Cryptopolitan (@CPOfficialtx) June 3, 2025

Stride (STRD) is the third offering, happening in what Strategy considers a strong market environment. The new asset will tap the services of Barclays, Morgan Stanley, Moelis & Company and TD Securities for its launch and distribution.

The IPO happens at a time when all Strategy assets are putting on strong performances, including the MSTR common stock, as well as previous preferred assets STRF and STRK. The decision to add another preferred type of shares follows the outperformance of Strategy compared to other technical stocks. 

Strategy to offer dividends on STRD

Strategy (MSTR, STRF, STRK) announced its plans to sell 2.5M of the new preferred STRD shares. Depending on market conditions and approval, Strategy will sell 10% Series A preferred stock with the STRD ticker. 

The proceeds from the sale will go toward the company’s regular BTC purchases, as well as general corporate purchases and working capital. The preferred stock sale will give some momentum to the company’s BTC purchases, though in the past weeks, the buying was mostly financed with MSTR sales and smaller placements of STRK.

The latest BTC purchase was financed with STRF and STRK proceeds. 

STRD will carry non-mandatory dividends at a 10% yearly rate, after approval by the board of directors. If the board declares a dividend, STRD will observe payment periods on March 31, June 30, September 30, and December 31 of each year. The first dividend payment period will start on September 30. 

The STRD dividends will be non-cumulative and will not accrue additional interest or rewards. The dividends will be payable fully in cash. The STRD shares can accrue over 10% in dividends during favorable conditions. 

Strategy also reserves the right to redeem all STRD shares if the amount of shares outstanding is less than 25% of the total supply. In that case, Strategy has a right to a full redemption, but no partial purchases. 

The liquidation price of STRD is set at $100, and holders can also demand repurchase in the case of unusual events and unfavorable market conditions. 

The STRD asset carries a higher risk

Compared to STRF and STRK, the new STRD asset is higher-risk. The priority in case of liquidation will be above common stock holders, but below STRK. The new STRD shares will carry no BTC upside. 

Strategy currently carries 0.00209 BTC per share, though not all investors will have a claim on that reserve in the case of unfavorable market events. The sale is considered a boost in the short term, especially for investors seeking passive income. However, the non-cumulative, non-mandatory dividends are seen as risky, in addition to exposure in the case of a bear market. 

Strategy has mentioned it may sell some of its BTC holdings to cover dividend payments. So far, Strategy has not announced sales, though not all of its wallets are public. The current stock strategy has created a flywheel effect for BTC, but only during a period of growth, with high risks during a bear market.

The recent stock sale coincides with BTC stability, as the price recovered to $105,375. MSTR has fallen to $372.27, following a brief rally above $400.

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