MicroStrategy Offers Preferred Stock, Eyes More Bitcoin

Business intelligence software provider MicroStrategy (MSTR) has announced a public offering of 2.5 million shares of its new Series A Perpetual Strike Preferred Stock. The company aims 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. The question remains: will this offering spark more interest from crypto-focused investors, or will the flexibility in dividend payments and redemption draw more attention?

In a separate development, MicroStrategy has filed a shelf registration for a mixed securities offering, intending to raise funds for potential Bitcoin investment and general corporate purposes. The company submitted a mixed securities registration statement with the U.S. Securities and Exchange Commission (SEC) on Form S-3.