MicroStrategy Offers Preferred Stock, Bitcoin Acquisition in Focus

MicroStrategy, a leading business intelligence company, has announced a public offering of 2.5 million shares of its new Series A Perpetual Strike Preferred Stock. The company plans to use the proceeds for general corporate purposes, including the acquisition of more Bitcoin.

The preferred stock has a liquidation value of $100 per share. Dividends will be paid quarterly starting March 31, 2025, and can be issued in cash, MicroStrategy Class A common stock, or a mix. Investors can convert their preferred stock into common stock in certain circumstances. MicroStrategy has the option to redeem the preferred stock early if the liquidation value falls below 25% of the original offering or if certain tax events occur. Redemption would be at the liquidation value plus any unpaid dividends.

This offering provides investors with the potential for stable returns through dividends and the flexibility to convert into common stock. Additionally, MicroStrategy's ongoing Bitcoin strategy adds a layer of interest for those watching the intersection of tech and cryptocurrency.

MicroStrategy's announcement comes as the company continues to expand its Bitcoin holdings. In January, the company filed a shelf registration for a mixed securities offering, with the potential proceeds intended to be used to purchase more Bitcoin and for general corporate purposes.

The offering of preferred stock is a strategic move by MicroStrategy to raise funds while providing investors with a stable return and the flexibility to convert their investment into common stock. As the company continues to invest in Bitcoin, this offering may attract crypto-focused investors looking for exposure to the digital asset through a established tech company.