- Strategy (formerly MicroStrategy) is launching 2.5 million perpetual preferred shares called “Stride” (STRD), offering a 10% annual dividend, to fund further Bitcoin accumulation and general operations.
- The new equity structure provides investors with non-cumulative dividends, redemption rights, and protections in the event of major corporate changes.
- The crypto community has expressed skepticism about this move, with some likening it to risky financial engineering.
- Bitcoin’s price hovered above $105,000 as Strategy continued its aggressive BTC acquisition, recently adding 705 BTC to its reserves.
- Michael Saylor, Strategy’s executive chairman, remains a vocal proponent of Bitcoin, urging investors to view it as the ultimate store of value.
Strategy’s Bold New Funding Play: The Stride Offering
Strategy, the corporate giant renowned for its massive Bitcoin holdings, is once again making headlines—this time with a fresh approach to raising capital. The company has announced the issuance of 2.5 million perpetual preferred shares, branded as “Stride” (STRD). Unlike previous funding rounds that leaned heavily on debt, this move leverages equity, signaling a shift in how Strategy plans to fuel its ongoing Bitcoin accumulation.
The Stride shares are designed to attract investors with a 10% annual dividend, paid out quarterly starting September 30, 2025. However, these dividends are non-cumulative, meaning if a payment is skipped, investors can’t claim it later. This structure gives Strategy flexibility in managing its cash flow while still offering an enticing yield to shareholders. The company has made it clear that proceeds from this offering will be used for general corporate purposes, with a strong emphasis on acquiring more Bitcoin and supporting working capital needs.
Beyond the dividend, the Stride shares come with specific redemption features. Strategy retains the right to buy back all outstanding STRD shares if certain conditions are met, such as the share count dropping below a quarter of the original issue or in response to qualifying tax events. In such cases, investors would receive $100 per share plus any declared but unpaid dividends, providing a clear exit path under defined circumstances.
Investor Protections and Community Reactions
To further reassure investors, Strategy has embedded additional safeguards into the Stride offering. If a “fundamental change” occurs—such as a major corporate restructuring or acquisition—holders of STRD shares can demand a cash buyback for some or all of their shares. The repurchase price would include the stated value and any declared but unpaid dividends up to the repurchase date. This clause is designed to offer a safety net, ensuring that investors aren’t left exposed in the event of significant shifts within the company.
Despite these protections, the move has not been universally welcomed. Some voices in the crypto community have raised concerns, questioning whether this complex financial maneuvering is sustainable or even ethical. Critics have gone so far as to compare the strategy to a Ponzi scheme, suggesting that the company’s relentless pursuit of Bitcoin accumulation could be risky for both shareholders and the broader market. This skepticism highlights the ongoing debate about the best ways for corporations to engage with digital assets and the potential pitfalls of aggressive financial engineering.
Market Context: Bitcoin’s Price and Strategy’s Relentless Accumulation
The timing of Strategy’s latest capital raise coincides with a period of renewed strength in the Bitcoin market. At the time of the announcement, Bitcoin was trading above $105,000, reflecting a modest daily gain. This price action aligns with Strategy’s continued commitment to expanding its Bitcoin reserves, as evidenced by its recent purchase of 705 BTC for approximately $75 million.
This aggressive accumulation strategy is not new for Strategy. The company has consistently positioned itself as a leader in corporate Bitcoin adoption, often using innovative financial instruments to fund its purchases. The Stride offering is simply the latest chapter in this ongoing saga, demonstrating the company’s willingness to explore new avenues for growth and capital deployment. As Bitcoin’s price continues to climb, Strategy’s bet on the digital asset appears increasingly prescient, though not without its share of controversy.
Saylor’s Vision: Bitcoin as the Ultimate Asset
At the heart of Strategy’s bold moves is Michael Saylor, the company’s executive chairman and a tireless advocate for Bitcoin. Speaking at the Bitcoin 2025 conference in Las Vegas, Saylor delivered a keynote titled “21 Ways to Wealth,” in which he urged investors to remain steadfast in their commitment to Bitcoin. He described the cryptocurrency as the ultimate form of capital in today’s rapidly evolving financial landscape, positioning it as a hedge against inflation and a store of value that transcends traditional assets.
Saylor’s unwavering belief in Bitcoin has been a driving force behind Strategy’s corporate strategy. His public statements and high-profile purchases have helped to legitimize Bitcoin as an institutional asset, inspiring other companies to consider similar moves. While not everyone agrees with his approach, there is no denying the impact that Saylor and Strategy have had on the broader conversation about digital assets and corporate treasury management.
Conclusion
Strategy’s introduction of the Stride preferred shares marks a significant evolution in how corporations can leverage equity to support digital asset accumulation. By offering attractive dividends, redemption rights, and investor protections, the company aims to attract new capital while continuing its aggressive Bitcoin strategy. However, the move has sparked debate within the crypto community, with some questioning the long-term sustainability of such tactics. As Bitcoin’s price remains robust and institutional interest grows, Strategy’s actions will likely serve as a bellwether for other companies navigating the intersection of traditional finance and the digital asset revolution.