Market News

Bitcoin-Backed STRD Makes Waves on Nasdaq as Strategy Seeks Nearly $1 Billion

Strategy has launched its latest "bitcoin-backed preferred stock," known as STRD, on the Nasdaq exchange, marking a significant event in the world of cryptocurrency finance.

This security offers a fixed 10% annual dividend, making it the highest-yielding option in Strategy’s lineup, which also includes the preferred stocks STRF and STRK.

Notably, STRD is a non-convertible and non-cumulative product, meaning dividends are paid only when declared, introducing a layer of risk for investors.

The company aims to raise close to $1 billion by selling 11.76 million shares at an $85 price point each, with expected net proceeds nearing $979.7 million for corporate purposes and further bitcoin acquisitions.

Investor interest appears robust, as evidenced by the recent purchase of 5,000 STRD shares by board member Jarrod Patten, who is already heavily invested in the company's stocks.

Michael Saylor, Strategy's executive chairman, highlighted STRD's appeal for fixed income while being secured by bitcoin, derived from the company's substantial holdings of 582,000 BTC.

Analysts anticipate future growth for Bitcoin, with Saylor forecasting values to reach $1 million shortly and upward of $13 million by 2045.

This strategic launch is designed to cater to yield-seeking investors while leveraging the growing institutional demand for Bitcoin.

The excitement surrounding Bitcoin and innovative financial instruments like STRD reflects a rapidly evolving investment environment embracing digital assets.

With strong backing and a clear vision, Strategy positions itself as a key player in reshaping the future of cryptocurrency investment.