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Strategy Announces Pricing for $722.5 Million Series A Perpetual Preferred Stock Offering
- The 10.00% Series A Perpetual Preferred Stock (STRF) from Strategy has been successfully priced, with a planned issuance of 8.5 million shares at $85.00 per share.
- The offering grew from an initial size of $500 million to $722.5 million due to strong investor demand, with trading expected to begin on March 25, 2025.
- The increased offering size reflects overwhelming investor interest, prompting Strategy to adjust the size to meet demand and show investor confidence.
- The issuance of Series A Perpetual Preferred Stock aims to raise funds for strategic initiatives, including purchasing more bitcoin and maintaining strategic assets.
- Investors purchasing the preferred stock will receive a fixed dividend rate of 10.00% annually, paid quarterly, with the offering expected to close on March 25, 2025.
- Acquiring bitcoin demonstrates Strategy's commitment to the digital asset market amid growing popularity for bitcoin as a store of value and inflation hedge.
- The perpetual preferred stock offering appeals to investors seeking high-yield income opportunities, supporting Strategy's long-term success in traditional and digital markets.
- Strategy estimates to net around $711.2 million from the offering, to be used for general corporate purposes including buying bitcoin and boosting working capital.
- Issuing perpetual preferred stock enables Strategy to raise funds without traditional debt, providing flexibility and long-term funding sources for growth.
- The successful pricing of Strategy's Series A Perpetual Preferred Stock reflects a strategic move by the company to raise visible funds while maintaining long-term growth prospects.
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