Bitcoin News Today: MicroStrategy upsizes $2.5B preferred stock offering to fuel Bitcoin strategy as stock dips 2.39%

MicroStrategy’s MSTR stock has drawn renewed attention following the company’s decision to upsize its preferred stock offering to $2.5 billion, a move aimed at bolstering its Bitcoin investment strategy. The updated offering, announced on July 25, involves the issuance of Series A Perpetual Stretch Preferred Stock (STRC) priced at $90 per share. The transaction, which includes the sale of 28,011,111 shares, is expected to generate approximately $2.521 billion in gross proceeds, with net proceeds of around $2.474 billion after fees and costs. The offering is scheduled to settle on July 29 and will be used for general corporate purposes, including additional Bitcoin purchases and operational needs [1].

The STRC shares come with a variable dividend rate starting at 9.00% annually, based on a stated value of $100 per share. Dividends will be paid monthly beginning August 31, 2025, and the board retains the authority to adjust the rate under specific conditions, though reductions are capped and cannot fall below prevailing market interest rates. A key feature of the offering is the compounded dividend structure: missed payments accumulate and grow monthly until resolved. Holders also benefit from redemption rights under certain circumstances, including a “clean-up” redemption if less than 25% of shares remain outstanding or in the case of tax-related events [1].

The market’s response to the upsized offering has been mixed. At press time, MSTR stock was trading at $405.89, with a market cap of $114.04 billion. Pre-market trading saw the stock dip to $405, a 2.39% decline, reflecting investor caution around the issuance. Analysts suggest that the move to raise additional capital highlights the company’s confidence in Bitcoin’s long-term value but raises questions about its financial structure and risk exposure. While the funds could accelerate Bitcoin accumulation—a core element of MicroStrategy’s strategy—the issuance of preferred shares may also draw scrutiny over dilution risks and the company’s evolving business model [1].

Notably, the offering aligns with MicroStrategy’s broader thesis that Bitcoin serves as a strategic store of value. Recent data shows the company purchased 6,220 Bitcoin for $739.8 million following Bitcoin’s recent all-time high. This activity underscores its commitment to maintaining a dominant position in institutional Bitcoin holdings. The STRC structure, with a low par value of $0.001 per share, is designed to maximize liquidity for investors, though it remains to be seen how the market will price the shares post-listing on exchanges like Nasdaq or NYSE [1].

The decision to expand the offering reflects a calculated risk. By leveraging preferred equity, MicroStrategy avoids diluting common shareholders while securing capital for its Bitcoin-focused strategy. However, the move could test investor confidence in the company’s ability to balance aggressive crypto investments with financial flexibility. As the transaction nears completion, market participants will closely monitor the stock’s performance and whether the funds translate into tangible growth in Bitcoin holdings or operational efficiency.

Source: [1] [MSTR Stock Eyes Rebound As Strategy Upsizes Debt Offering To $2.5 Billion] [https://coinmarketcap.com/community/articles/6884bd63cc8ce42f9a1bae5d/] [2] [MLQ.ai | Stocks] [https://mlq.ai/news/]