MicroStrategy Exceeds Expectations with $563.4 Million Stock Offering
MicroStrategy has made headlines with its latest perpetual convertible preferred stock offering, raising an impressive $563.4 million—almost triple the initial target amount.
Expanded Stock Offering
As per a statement released on Jan. 31, the company expanded its STRK stock offering to 7.3 million shares, each priced at a $100 liquidation preference.
Utilization of Proceeds
The raised funds are intended to be allocated towards various corporate initiatives, with a focus on Bitcoin acquisitions and general working capital.
Investor Benefits
- Investors, upon board approval, stand to receive an 8% fixed annual dividend, paid quarterly starting March 31, 2025.
- Dividend payments can be made in cash, Class A common stock, or a combination of both.
Redemption Clause
MicroStrategy has the option to redeem all outstanding preferred STRK stock under certain circumstances, such as the total liquidation preference falling below 25% of the original issuance or specific tax events occurring.
Bitcoin Holdings
MicroStrategy currently holds the title of the largest corporate holder of Bitcoin, owning 471,000 BTC valued at approximately $50 billion. The firm has an unrealized profit of almost $20 billion, according to data from Saylortracker.