MicroStrategy Completes $563 Million Preferred Stock Offering, Plans to Use Part of the Funds to Increase Bitcoin Holdings

PANews reported on January 31 that MicroStrategy founder Michael Saylor (@saylor) tweeted that MicroStrategy announced the pricing of its Strike preferred stock ($STRK) and increased the original transaction size from $250 million to $584 million.

According to the official announcement, Nasdaq-listed MicroStrategy (MSTR) announced the completion of the issuance of 7.3 million Series A perpetual exercise preferred stocks (STRK), priced at $80 per share, with an estimated net financing of $563.4 million. The preferred stock has a liquidation price of $100 per share, an annual dividend rate of 8%, and dividends can be paid in cash or Class A common stock, and can be converted into common stock at an initial conversion price of $1,000 per share.

MicroStrategy said that the financing will be used for general corporate purposes, including continued increase in Bitcoin holdings and replenishment of operating funds. According to the terms, if the total liquidation value of the outstanding preferred stock is less than 25% of the total issuance amount, the company can redeem it in full; if a major tax or legal event occurs, investors can request a repurchase.

The issuance is jointly underwritten by Barclays, Moelis Company and other institutions, and is expected to be completed on February 5, 2025. As of January 2025, MicroStrategy holds approximately 190,000 bitcoins, and this financing may further expand its bitcoin holdings.