MicroStrategy (Strategy) announced the initial public offering of 5 million shares of STRC. Proceeds from the offering will be used for general corporate purposes, including the purchase of Bitcoin.
This new type of stock, expected to trade on Nasdaq under the symbol STRC, will be registered under the Securities Act of 1933. Proceeds from the IPO will reportedly be used for general corporate purposes, including Bitcoin purchases and financing working capital.
The company announced that each STRC share will have a par value of $100 and will pay an initial dividend of 9% annually. Dividends will be paid retroactively in cash on the last day of each month, subject to approval by the company's board of directors. The first dividend payment will be made on August 31, 2025.
Strategy will have the right to change the dividend rate in the future. However, these changes will be subject to certain limitations. The Company may reduce the dividend rate by a maximum of 25 basis points compared to the previous period, plus an additional percentage calculated based on specific market conditions. Furthermore, the new rate cannot fall below the one-month SOFR interest rate for certain dates.
The company's strategy is to adjust the dividend rate to keep the market price of STRC shares close to the par value of $100. Furthermore, if accumulated dividends remain unpaid, they will be subject to “compound dividends,” which will accrue interest monthly.
*This is not investment advice.
