MicroStrategy's Preferred Stock Offering: A New Chapter in Bitcoin Acquisition

Generado por agente de IAWesley Park
viernes, 31 de enero de 2025, 1:00 pm ET1 min de lectura
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MicroStrategy, the business intelligence company, has priced its preferred stock offering at $80 per share, aiming to raise $563 million to fund its ongoing Bitcoin acquisition strategy. This move is a significant step in the company's broader plan to raise $2 billion in capital over the next three years, with the ultimate goal of purchasing more Bitcoin.

The offering, which consists of 7,300,000 shares of 8.00% Series A Perpetual Strike Preferred Stock, is set to settle on February 5, 2025, subject to customary closing conditions. The preferred stock will have a liquidation preference of $100 per share and will accumulate cumulative dividends at a fixed rate of 8.00% per annum. Regular dividends on the perpetual strike preferred stock will be payable when, as and if declared by MicroStrategy's board of directors, out of funds legally available for their payment, quarterly in arrears on March 31, June 30, September 30, and December 31 of each year, beginning on March 31, 2025.

The offering is a testament to MicroStrategy's commitment to its long-term Bitcoin acquisition strategy. The company has been actively buying Bitcoin since August 2020, and its total holdings have grown significantly, reaching 471,107 Bitcoin as of the latest purchase. This latest offering further strengthens the company's financial position and provides it with additional resources to continue its Bitcoin accumulation strategy.

The offering also highlights the company's confidence in the long-term potential of Bitcoin as a reserve asset. By raising capital through this offering, MicroStrategy is positioning itself to take advantage of any future price increases in Bitcoin, which could further enhance its stock price and shareholder value.

In conclusion, MicroStrategy's preferred stock offering is a significant step in the company's broader strategy to raise $2 billion in capital over the next three years. This offering demonstrates the company's commitment to its long-term plans for Bitcoin acquisition and its confidence in the cryptocurrency's potential as a reserve asset. As the company continues to execute its "21/21" strategy, investors should keep a close eye on MicroStrategy's progress and the potential impact of its Bitcoin holdings on its stock price and shareholder value.


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