Strategy's new perpetual preferred shares aim to attract capital from traditional funds, offering a competitive 9% initial yield compared to money market options.
Strategy has launched a new class of perpetual preferred shares, the Series A Variable Rate Stretch Preferred Stock (STRC), aiming to issue five million shares at a face value of $100 each. The STRC offers an initial annualized dividend of 9%, positioning it as an alternative to traditional money market funds, which yield around 4.25%. This move is part of Strategy's broader strategy to redirect capital into Bitcoin-backed instruments, enhancing its operational capabilities and digital asset investments.