MicroStrategy to raise funds for Bitcoin with new perpetual preferred STRK stock offering
MicroStrategy plans to raise funds by issuing 2.5 million shares of Series A Perpetual Strike Preferred Stock (STRK) to expand its Bitcoin holdings. The offering, pending regulatory approval, aims to support corporate operations and Bitcoin acquisitions. Each share has a $100 liquidation preference and will accumulate fixed-rate dividends, payable quarterly starting March 31, 2025. Shareholders can convert their preferred stock into Class A common stock under certain conditions. The company can redeem shares if the liquidation preference falls below 25% of the initial issue or for tax-related reasons. The offering is seen as a strategic move to link investor opportunities to Bitcoin's growth while enhancing MicroStrategy's treasury assets. Recent actions include redeeming a $1.05 billion tranche of 2027 convertible senior notes and increasing authorized Class A shares from 330 million to 10.3 billion, along with preferred stock from 5 million to 1 billion shares. MicroStrategy holds 471,107 BTC, valued at nearly $50 billion.
