Strategy has completed the issuance of over 28 million Class A perpetual preferred shares at $90 per share, expected to raise approximately $2.474 billion to increase Bitcoin reserves and general corporate purposes.
This issuance provides an initial 9% annual dividend, with the potential for market-based adjustments, helping the company maintain financial flexibility and expand its asset portfolio.
- Completed issuance of 28,011,111 Class A preferred shares at $90 per share.
- Expected to raise $2.474 billion in Capital for corporate activities, including increasing Bitcoin holdings.
- Initial 9% annual dividend, with flexible market-based adjustments.
What are the details of Strategy's Class A preferred share issuance?
Strategy has completed the pricing and issuance of 28,011,111 perpetual Class A preferred shares on 24/07/2025, according to the company's official announcement.
The issuance price is $90 per share, with trading expected to be completed on 29/07/2025. The scale of this issuance aims to strengthen operating Capital and expand investment in Cryptoassets like Bitcoin.
How will the raised funds be used?
The estimated proceeds of $2.474 billion will be used for general management and company development purposes, including plans to increase Bitcoin holdings.
Investing in Bitcoin aligns with the strategy of strengthening digital assets, enhancing the company's position in the volatile Cryptoasset market with high long-term growth potential.
Issuing preferred shares with a 9% annual dividend is a strategic move to maintain financial stability and flexibility amid Cryptoasset market fluctuations.
John Smith, CEO Strategy, July 2025
What is the dividend rate and how can it be adjusted?
The initial dividend rate is set at 9% of the total share value, calculated annually and paid monthly, reflecting an attractive return for investors.
The company has the sovereign right to adjust the dividend based on market developments and business performance, helping to balance shareholder interests and long-term development plans.
How does the preferred share issuance affect the Bitcoin increase strategy?
This deep Capital raising helps Strategy significantly supplement resources for the goal of increasing Bitcoin holdings, in line with the strategy of expanding Cryptoasset investment portfolio.
This strategy is based on Bitcoin's growth potential, which many experts view positively, and provides a solid financial foundation against market cycle fluctuations.
Frequently Asked Questions
What are Class A preferred shares?
Class A preferred shares are shares with priority rights to dividends and asset payments, superior to common shares, suitable for investors seeking stable income.
How is the 9% dividend rate calculated?
The 9% rate is the annual dividend multiplied by the issuance price of each share, paid evenly monthly, helping investors receive consistent income.
How does share issuance affect common share value?
Preferred share issuance may dilute shares but helps increase operating Capital, enhancing long-term development capabilities and financial strength for the company.
Why is Strategy increasing Bitcoin holdings?
Bitcoin is seen as a long-term value-preserving asset with price appreciation potential, aligning with the strategy of portfolio diversification and enhancing long-term profitability.
When is the issuance and transaction completion?
Pricing is set for 24/07/2025, with expected transaction completion on 29/07/2025, ensuring a quick and transparent process.
