MicroStrategy, a leading business intelligence firm, has made significant moves in the cryptocurrency space recently. The company has announced the pricing of its Strike Preferred Stock (STRK) Offering, which has been upsized from $250 million to $584 million. This offering consists of 7.3 million shares of 8.00% Series A Perpetual Strike Preferred Stock priced at $80 per share. The net proceeds from the offering are estimated to be around $563.4 million after deducting underwriting discounts, commissions, and offering expenses. The sale is expected to settle on February 5, 2025, pending standard closing conditions.
The preferred stock comes with a $100 per share liquidation preference and offers 8.00% annual cumulative dividends, payable quarterly starting March 31, 2025. Dividends can be paid in cash, class A common stock, or a combination of both. The company plans to utilize the net proceeds for general corporate purposes, including the acquisition of bitcoin and working capital.
In a bold move, MicroStrategy has significantly expanded its bitcoin holdings by acquiring an additional 10,107 BTC for approximately $1.1 billion. This purchase was made at an average price of $105,596 per bitcoin between January 21 and January 26. With this latest acquisition, MicroStrategy now holds a total of 471,107 BTC, valued at over $46 billion.
This strategic move reaffirms MicroStrategy’s commitment to bitcoin as a store of value and a hedge against inflation. The company’s CEO, Michael Saylor, has been a vocal advocate for bitcoin, citing its scarcity and utility as key factors driving its long-term value.
By increasing its bitcoin holdings and leveraging innovative financial instruments like perpetual preferred stock, MicroStrategy is positioning itself as a major player in the evolving digital asset landscape. With a clear focus on maximizing shareholder value and capitalizing on the potential of cryptocurrencies, MicroStrategy continues to make headlines in the world of finance and technology.