"Strategy Preferred Stock Issuance Set to Deliver Massive Profits to Shareholders"

YM Lee

Summary

Strategy (MSTR) has reportedly secured $1 billion in funding through the issuance of preferred stock (STRD).
Accelerating Bitcoin purchases with the raised funds could bring significant profits to common shareholders if Bitcoin’s price rises.
Strategy currently plans to raise a total of $84 billion in capital by 2027 through multiple preferred stock programs.

Recently, expectations have emerged that Strategy (MSTR), which is accelerating Bitcoin (BTC) purchases using funds raised via preferred stock issuance, could ultimately generate substantial profits.

According to The Block, a virtual asset (cryptocurrency) specialist media outlet, on the 18th (local time), TD Cowen analysts stated, "Strategy recently raised $1 billion through a public offering of preferred stock (STRD, 10% annual non-cumulative dividend, non-convertible), and based on this, is promoting the purchase of Bitcoin. This is expected to serve as a channel for high-yield funds to flow into Bitcoin. If Bitcoin continues to rise against the dollar, future preferred stock issuance could result in significant profits for common shareholders."

Currently, Strategy plans to raise a total of $84 billion in capital by 2027 through the company’s perpetual preferred stock programs: STRK (8% fixed dividend, convertible) and STRF (10% fixed cumulative dividend), with the recent STRD issuance set to secure even more funds.

BTC