Strategy Inc shares are trading 5.6% lower Tuesday after the company announced an offering of 5 million shares of its Series A Perpetual Strife Preferred Stock in a public offering.

Strategy previously said it plans to sell its Perpetual Strife Preferred Stock over an extended period of time. The preferred stock will accumulate cumulative dividends at a fixed rate of 10% per annum.

Strategy has the right to redeem its preferred stock for cash if certain conditions are met. The liquidation preference of the perpetual strife preferred stock is initially set at $100 per share.

Strategy said it intends to use the net proceeds from the offering for general corporate purposes, including the acquisition of additional Bitcoin BTC/USD. The company announced plans in October 2024 to raise $42 billion over the next three years in an effort to keep stacking Bitcoin.

As of March 9, Strategy held an aggregate of approximately 499,096 Bitcoin, acquired at an average purchase price of approximately $66,357 per coin.