STRD Stock’s 10% Yield: IPO Gimmick or Genius?

Another day, another yield-chasing trap dressed as innovation.

Strategy’s IPO twist dangles a juicy 10% return—just enough to lure retail investors hungry for scraps in a low-rate world. But peel back the glossy prospectus, and the math gets murky fast.

How it works (supposedly):

- Leveraged algo-trading ‘secret sauce’ (read: overengineered beta)

- Fee-heavy structure that bleeds returns during drawdowns

- Lock-up periods longer than a crypto bear market

The closer: In a market where yield is either fake or fleeting, maybe the real strategy is remembering Wall Street’s oldest rule—if it looks too good to be true, it’s probably underwritten by bankers collecting fees either way.

TLDR

• Strategy priced its STRD Stock IPO at $85 per share on June 5, 2025.
• The offering includes 11,764,700 shares of Series A Perpetual Stride Preferred Stock.
• The expected net proceeds from the IPO are approximately $979.7 million.
• Strategy plans to use the funds for general corporate purposes and bitcoin acquisitions.
• The STRD Stock offers a 10.00 percent annual non-cumulative dividend if declared.

Strategy priced its STRD Stock initial public offering on June 5, 2025, issuing 11,764,700 shares at $85.00 each. Pending standard settlement procedures, the company expects to close the transaction on June 10, 2025. Strategy projects net proceeds of approximately $979.7 million after expenses and underwriting deductions.

Proceeds from this offering will fund general operations, Bitcoin acquisitions, and company liquidity management aligned with the Metaplanet structure bill. The offering reflects Strategy’s continued positioning within the digital asset and capital markets segments. Trading will begin on Nasdaq under the STRD ticker post-settlement.

The company assigned a 10.00% annual dividend rate to the STRD Stock, based on a $100 initial liquidation preference per share. However, dividends are non-cumulative and will only be paid if declared by the board. Declared dividends will be distributed quarterly, beginning on September 30, 2025.

Strategy Ties Preference Value to Market

Each share of STRD Stock carries a $100 liquidation preference, adjustable daily based on defined trading benchmarks. The Strategy’s board reserves the right to declare dividends, and if it does not, unpaid dividends do not accumulate. All dividends, when declared, will be issued strictly in cash per the offering terms.

Dividend payments will occur on the last day of each calendar quarter, starting with the third quarter of 2025. If no dividend is declared by the set date, no payment obligation arises for that period. This structure supports capital flexibility as outlined in the Metaplanet structure bill framework.

The company set the adjustment mechanism for the liquidation preference to track market performance and strategic share issuances. Adjustments consider previous trading activity, daily pricing, and offer-specific valuations. This mechanism ensures shareholders receive accurate redemption and repurchase valuations under fluctuating conditions.

Strategy may redeem all STRD shares if the total outstanding stock drops below 25% of the total issued. This condition includes STRD Stock from this and any future offerings. Redemption also becomes available in response to qualifying tax events, maintaining structural alignment with regulatory shifts.

The redemption price includes the then-current liquidation preference plus any declared but unpaid dividends up to the redemption date. No undeclared dividends are included in the redemption payment. The company holds sole discretion in initiating redemption under these provisions.

In the case of a defined fundamental change, STRD holders may require the Strategy to repurchase shares at the stated amount. The repurchase includes any declared but unpaid dividends up to the repurchase date. This clause offers exit flexibility under specific change-of-control or restructuring scenarios.