MicroStrategy Raises $563M for Bitcoin Buying Spree

MicroStrategy Upsizes Preferred Stock Offering, Raising $563M for More Bitcoin

MicroStrategy, a leading business intelligence company, has announced an upsized offering of preferred stock, raising $563 million. The proceeds from this offering will be used to acquire more Bitcoin, further expanding the company's significant holdings in the cryptocurrency.

The offering, priced at $80 per share, consists of 7.3 million shares of Series A Perpetual Exchangeable Preferred Stock (STRK). The preferred stock has a settlement price of $100 per share and an 8% annual dividend rate, payable in cash or Class A common stock. The conversion price is set at $1,000 per share.

Michael Saylor, the CEO of MicroStrategy, has been a vocal advocate for Bitcoin, and this offering is a testament to the company's commitment to the cryptocurrency. The company has previously purchased Bitcoin worth billions of dollars, and this latest offering will allow it to continue its aggressive acquisition strategy.

The offering is expected to settle on February 5, 2025, subject to customary closing conditions. The transaction is underwritten by Barclays and Moelis & Company.

This development comes as part of MicroStrategy's broader strategy to diversify its revenue streams and tap into the growing potential of cryptocurrencies. The company has been actively exploring the use of Bitcoin as a reserve asset and a means of hedging against inflation.

In recent months, MicroStrategy has been at the forefront of corporate adoption of Bitcoin, with several other companies following its lead. This latest offering is a further indication of the company's commitment to the cryptocurrency and its belief in the long-term potential of Bitcoin.