MicroStrategy Raises $563M for Bitcoin Buying Spree

MicroStrategy, a leading software company, has successfully priced a $563.4 million stock offering, with proceeds earmarked for the acquisition of more Bitcoin. The offering, which consists of 7.3 million shares of the company's Perpetual Strike Preferred Stock (STRK), was priced at $80 per share. After deducting underwriting discounts, commissions, and offering expenses, the net proceeds are estimated to be approximately $563.4 million.

The STRK preferred stock has a settlement price of $100 per share and an 8% annual dividend rate, payable in either cash or Class A common stock. It is convertible into common stock at an initial conversion price of $1,000 per share. If the total liquidation value of the preferred stock falls below 25% of the issuance amount, the company has the right to redeem all shares. The offering is expected to settle on February 5, 2025, subject to customary closing conditions.

Michael Saylor, the chairman of MicroStrategy, has been a prominent advocate for Bitcoin investment. Under his leadership, the company has amassed a significant amount of Bitcoin, with its current holdings estimated to be around 190,000 bitcoins. The proceeds from the STRK offering will be used to further increase the company's Bitcoin holdings and for other general corporate purposes.

The STRK offering was underwritten by Barclays and Moelis & Company. The strong demand for the offering reflects the growing interest in Bitcoin and the potential for MicroStrategy to continue expanding its Bitcoin holdings. The company's unique position in the market, with access to both debt and equity capital markets, allows it to leverage its stock market offerings to fund its Bitcoin purchases.