MicroStrategy Prices $584M in Strike Preferred Stock to Buy More Bitcoin

MicroStrategy has raised the stakes with a major upsized offering!

The company recently announced the pricing of its Strike Preferred Stock (STRK) offering, increasing the deal from $250 million to a massive $584 million. On January 30, 2025, the company revealed it would offer 7.3 million shares of 8.00% Series A Perpetual Strike Preferred Stock at $80 per share.

But that’s not all – this bold decision signals something bigger about the company’s plans and its commitment to Bitcoin.

High Demand for Capital Raise

MicroStrategy’s first attempt to raise capital through perpetual preferred stock seems to have attracted strong demand. After deducting underwriting discounts, commissions, and other offering expenses, the company estimates it will receive around $563.4 million in net proceeds. The sale of the perpetual strike preferred stock is expected to settle on February 5, 2025, pending standard closing conditions.

Understanding the Key Terms

The preferred stock comes with a $100 per share liquidation preference and offers 8.00% annual cumulative dividends. These dividends will be paid quarterly, starting on March 31, 2025. The company can pay dividends in cash, Class A common stock, or a combination of both.

The net proceeds from the offering will be used for general corporate purposes, including the purchase of more Bitcoin and supporting working capital.

MicroStrategy’s Growing Bitcoin Holdings

In a related move, MicroStrategy recently acquired an additional 10,107 BTC for approximately $1.1 billion. The average price paid per Bitcoin was $105,596, with the purchases made between January 21 and January 26. As a result, the company now holds 471,107 BTC, worth over $46 billion.

While the market (and Wall Street) watches closely, MicroStrategy’s aggressive strategy could set new benchmarks for corporate crypto adoption.