MicroStrategy, the largest corporate holder of Bitcoin, has announced plans to raise close to $1 billion through a new stock offering. Led by executive chairman Michael Saylor, the company plans to issue 11,764,700 shares of 10.00% Series A Perpetual Stride Preferred Stock, priced at $85 per share. After covering underwriting discounts and other expenses, MicroStrategy expects to net about $979.7 million from the offering. The funds will primarily be allocated towards corporate purposes, particularly for acquiring more Bitcoin and working capital.
This new strategy represents a significant shift from the previously discussed $250 million offering, enabling MicroStrategy to raise four times that amount. Unlike its typical reliance on common stock or convertible debt for funding, the perpetual preferred stocks will provide professional and institutional investors with non-cumulative dividends of 10%.
With Bitcoin currently priced around $103,800, this new capital could allow MicroStrategy to buy an additional 9,633 BTC, which is considerably more than its recent purchase of 705 BTC for $75.1 million on June 2. This announcement comes amidst ongoing discussions about Bitcoin’s role in corporate finance and its growing acceptance among investors.
This new strategy represents a significant shift from the previously discussed $250 million offering, enabling MicroStrategy to raise four times that amount. Unlike its typical reliance on common stock or convertible debt for funding, the perpetual preferred stocks will provide professional and institutional investors with non-cumulative dividends of 10%.
With Bitcoin currently priced around $103,800, this new capital could allow MicroStrategy to buy an additional 9,633 BTC, which is considerably more than its recent purchase of 705 BTC for $75.1 million on June 2. This announcement comes amidst ongoing discussions about Bitcoin’s role in corporate finance and its growing acceptance among investors.
