Strategy (MSTR) announced its latest twist on raising funds from the capital markets to fund additional Bitcoin (BTC) purchases on Tuesday morning, but there are signs that Wall Street spigot is slowing down.
The company’s Permanent Dispute Preferred Stock (STRF) will provide a fixed 10% cash dividend paid per quarterly in accordance with the SEC application if dividends are unpaid. The initial dividend payment is scheduled for June 30th, 2025.
The first priority series of strategies (STRK) initially offered only an interest rate of 8%. Also, the Strategic Convertible Debt Series had a negligible or 0% interest rate (of course, different from the preferred product).
Unlike common stocks, STRF holders do not have the right to vote, but liquidation is given priority with a liquidation preference of $100 per share. The strategy is entitled to redeem the STRF if there is less than 25% of the original shares remaining, or if a tax event occurs, but the holder can request a buyback in the event of a fundamental change.
The STRF is expected to trade on NASDAQ within 30 days of issuance, exposing the high yield structure to Bitcoin to investors. Morgan Stanley, Barclays, Citigroup, and Moelis & Company are co-book running managers provided under the SEC shelf registration.
After purchasing Bitcoin at Galloping Pace over the past few months, strategy fundraising and token acquisitions have slowed to crawl in recent weeks. Last week, the company bought additional bitcoin, but rarely moved the needle. It was only 130 btc for $10.7 million to bring total holdings to 499,226 tokens.
MSTR, along with general market slides, is 5% lower in early action on Tuesday, with Bitcoin dip coming from $84,000 a day ago to $81,300.
