Strategy (MSTR) announced plans to offer 5 million shares of its new Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) in an initial public offering.
The STRC Stock carries a $100 stated amount per share and will accrue cumulative dividends at a variable annual rate, with the initial dividend rate set to 9.00%. Strategy aims to keep STRC trading value at around the $100 stated amount.
Dividends, when declared by the board, will be payable monthly in arrears on the last calendar day of each month, beginning August 31. Strategy may, at its discretion and within specified SOFR-linked limits, adjust the dividend rate for subsequent periods, provided all prior dividends have been paid in full. Adjustments will be made based on whatever Strategy believes will cause the price to trade near or at the $100 stated amount.
In the investor presentation, Founder and Executive Chairman Michael Saylor stated that STRC is targeting “short duration, lower volatility investors” before naming money market funds and short-term T-bills as examples. Saylor also reaffirmed Strategy’s commitment to becoming the premier issuer of bitcoin-backed credit instruments.
The launch of STRC comes just two weeks after Strategy launched a $4.2 billion ATM offering program on STRD.
Read More: Strategy launches $4.2 billion STRD ATM program, books $14 billion in unrealized profits
At time of publication, MSTR traded up 0.5% during pre-market hours.
