MicroStrategy (Nasdaq: MSTR), widely recognized for its bold Bitcoin acquisition strategy, has announced a new public offering of 2.5 million shares of its Series A Perpetual Strike Preferred Stock. The proceeds will be used for general corporate purposes, with a key focus on increasing the company’s Bitcoin holdings.
MicroStrategy transformed itself in to a Bitcoin Leveraged Fund, and is no longer an tech company.
Unwavering Commitment to Bitcoin
As of January 26, 2025, MicroStrategy holds a record-breaking 471,107 BTC, acquired for approximately $30.4 billion at an average price of $64,511 per Bitcoin. Despite the high market prices, MicroStrategy remains steadfast in its strategy, viewing Bitcoin as a critical long-term asset and hedge against inflation.
Michael Saylor, MicroStrategy’s founder and executive chairman, reiterated his confidence in Bitcoin, describing it as “digital gold” and a superior store of value. Already owning around 2.2% of Bitcoin’s total supply, the company continues to strengthen its position as a leader in corporate Bitcoin adoption.
Introducing the Series A Perpetual Strike Preferred Stock
This new funding instrument offers investors a fixed dividend and the option to convert shares into common stock under certain conditions. Key features include:
- $100 liquidation preference per share
- Quarterly dividends beginning March 31, 2025, payable in cash, stock, or a combination of both
- Conversion rights for investors, providing additional flexibility
By diversifying its funding methods—such as bonds, equity offerings, and now preferred shares—MicroStrategy minimizes shareholder dilution while raising capital for Bitcoin purchases.
Strategic Vision and Risks
The proceeds from the preferred stock issuance will primarily support MicroStrategy’s long-term Bitcoin accumulation strategy. According to Saylor, the company views Bitcoin as a cornerstone of its long-term plan to maximize shareholder value.
However, the company acknowledges potential risks, including Bitcoin’s price volatility and broader economic uncertainties, which could affect the value of its holdings and overall market performance.
Leading the Charge in Bitcoin Adoption
Barclays, Moelis & Company LLC, BTIG, TD Cowen, and Keefe, Bruyette & Woods are leading the stock offering, with additional co-managers supporting the process. Full details can be found on the SEC’s website.
Through its innovative approach, including the introduction of the Series A Perpetual Strike Preferred Stock, MicroStrategy is once again demonstrating its pioneering role in blending traditional finance with the emerging Bitcoin economy. This strategy not only reinforces its position as the largest corporate Bitcoin holder but also offers investors a unique opportunity to participate in the growth of digital assets.
With its consistent investments and innovative financial strategies, MicroStrategy reaffirms its commitment to Bitcoin as a transformative asset class.