MicroStrategy Raises $563M for Bitcoin Buy, Stock Offering

Business intelligence firm MicroStrategy (MSTR) has announced a significant stock offering, aiming to raise $563.4 million through the sale of perpetual strike preferred stock at $80 per share. The company has stated that a portion of the proceeds will be used to acquire more Bitcoin (BTC), the leading cryptocurrency by market capitalization.

In addition to purchasing more BTC, the funds raised will also be allocated for working capital and general corporate expenses. A preferred stock offering allows a company to raise capital without diluting its voting rights, and typically offers investors higher and more consistent yields, along with greater stability.

The perpetual strike preferred stock will have a liquidation preference of $100 per share and will accumulate cumulative dividends at a fixed rate of 8.00% per annum. Holders of the preferred stock will have the right to convert their shares into MicroStrategy's class A common stock on any business day, subject to certain limitations.

Earlier this month, MicroStrategy's shareholders, including Bitcoin maximalist and former CEO Michael Saylor, voted to increase the number of shares to raise funds for additional BTC purchases. The proposal, which passed with approximately 56% approval, aimed to increase the number of common shares from 330 million to 10.3 billion and preferred shares from 5 million to 1 billion.

As of writing, MicroStrategy holds a stash of 471,107 BTC, valued at over $48 billion. The flagship digital asset is currently trading at $102,002, representing a 3.2% decrease over the last 24 hours. Meanwhile, MSTR is valued at $334, with a 1.6% decrease on the day.