MicroStrategy Raises Preferred Stock Offering from $250M to $584M

MicroStrategy announced on Friday that it had increased its special preferred stock offering from $250 million to $584 million by planning to issue 7.3 million shares of 8.00% Series A Perpetual Strike Preferred Stock at $80 per share, a measure designed to support its corporate strategies and Bitcoin investments.

Following the announcement, additional details regarding the structure and intent of the offering were disclosed. The sale is expected to finalize on February 5, 2025, pending standard closing conditions.

Offering Structure and Institutional Involvement

The preferred stock will carry an 8% annual dividend, and MicroStrategy anticipates netting approximately $563.4 million from the sale after expenses and commissions.

A consortium of financial institutions—including Barclays, Moelis & Company, BTIG, TD Cowen, Keefe, Bruyette & Woods, AmeriVet, Bancroft Capital, and The Benchmark Company—has been engaged to structure and manage the offering, ensuring that the process meets industry standards and regulatory requirements.

Strategic Implications and Bitcoin Focus

By opting for a preferred stock issuance rather than a common stock offering, MicroStrategy looks to secure the necessary funding while preserving the equity of its existing common shareholders.

The raised capital is expected to bolster a range of corporate initiatives, including potential further acquisitions of Bitcoin.

Earlier this month, Michael Saylor revealed that the company had acquired 10,107 BTC for $1.1 billion to enhance its Bitcoin portfolio.

According to the company’s 8-K filing, MicroStrategy now holds 471,107 Bitcoin, valued at approximately $30.4 billion.

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