Strategy announced a $4.2 billion STRD preferred stock issuance plan, with funds to be used for increasing Bitcoin holdings

ChainCatcher news, Strategy (NASDAQ: MSTR/STRK/STRF/STRD) announced on July 7 that it has signed a sales agreement to issue up to $4.2 billion worth of 10.00% Series A perpetual Stride preferred stock (STRD Stock). The company plans to sell these shares in an orderly manner over a longer period based on market trading prices and volumes.

As the world's first and largest Bitcoin treasury company, Strategy stated that the proceeds will primarily be used for Bitcoin acquisitions, operating capital, and paying dividends to existing preferred stockholders. The company has adopted Bitcoin as its primary reserve asset while continuing to provide AI-driven enterprise analytics software services.

The shares being issued will be sold through a "market offering" in accordance with securities law, and the related prospectus was submitted to the U.S. Securities and Exchange Commission on July 7.