Key Points:
- MicroStrategy Bitcoin holding raises $584M by issuing 7.3M preferred shares at $80 each, boosting capital for future projects.
- The company plans to increase its Bitcoin holdings with a large portion of the funds, continuing its aggressive crypto strategy.
- Preferred shares offer an 8% annual dividend and can be converted into common stock, with repurchase options in certain events.
MicroStrategy, the Nasdaq-listed business intelligence giant (MSTR), has revealed the issuance pricing for its Strike preferred stock ($STRK) and an increase in the transaction size from an initial $250 million to a remarkable $584 million.
MicroStrategy Bitcoin Holding Raises $584M in Financing
In an official announcement, MicroStrategy confirmed the successful completion of the issuance of 7.3 million Series A perpetual exercise preferred shares, priced at $80 each. This pricing translates into an estimated net financing of $563.4 million. The preferred stock comes with a liquidation price of $100 per share, an 8% annual dividend rate, and the flexibility to be paid in cash or Class A common stock. Shareholders also have the option to convert these shares into common stock at an initial conversion price of $1,000 per share.
MicroStrategy plans to use the proceeds from this financing to further its corporate objectives, particularly by continuing to increase its MicroStrategy Bitcoin holdings. The company, which already owns about 190,000 bitcoins as of January 2025, may use this funding to expand its MicroStrategy Bitcoin holdings even further. The company also aims to replenish its operating funds with the raised capital.
Read more: MicroStrategy Bitcoin Investment Surpasses $22 Billion Mark In 2024
MicroStrategy’s Strategy to Increase Bitcoin Holdings
MicroStrategy can redeem the preferred shares in full if the liquidation value of the outstanding shares falls below 25% of the total issuance amount. Additionally, in the event of a major tax or legal occurrence, investors may request a repurchase of their shares.
The issuance, which is jointly underwritten by Barclays, Moelis & Company, and other institutions, is set to be completed by February 5, 2025. This new funding round significantly impacts MicroStrategy Bitcoin holdings, allowing the company to remain one of the largest corporate Bitcoin holders globally. As it continues to pursue an ambitious Bitcoin strategy, MicroStrategy Bitcoin holdings are set to grow, potentially adding further value to its balance sheet.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
Other Posts
Latest
Olumide Osunkoya Sentenced to 4 Years for £2.5M Illegal ATM Scheme
First White House Crypto Summit Will Be Attended by President Trump
Ukraine Crypto Bill Moves Forward as Lawmakers Push for Legalization and Taxation
Press Release
Bitlayer Advances the First BitVM Implementation Through Major Strategic Partnerships
Memeagent Is Gaining Attention – Meeting Chad, the AI Agent That’s Changing the Game
