MicroStrategy Raises Stocks Offering to $584M from $250M

MicroStrategy expanded its funding strategy through an increased special preferred stock offering which grew from $250 million to $584 million. The company intends to distribute 7.3 million shares of 8.00% Series A Perpetual Strike Preferred Stock at a price of $80 per share. 

The corporate expansion of MicroStrategy and its Bitcoin investment program receive backing from this strategic move. The stock offering will finish its standard closing conditions phase on February 5, 2025 and MicroStrategy predicts it will retain $563.4 million after deducting costs and commissions.

Source:  X

MicroStrategy has selected Barclays, Moelis & Company, BTIG, TD Cowen, Keefe, Bruyette & Woods, AmeriVet, Bancroft Capital and The Benchmark Company to manage their offering of preferred stock. 

The financial institutions involved in this process ensure both the industry standards and regulatory requirements are properly followed. MicroStrategy decided to distribute preferred stock instead of common stock because this approach enables the company to obtain financing while safeguarding the existing common shareholder base. 

The company’s raised funds will enable multiple corporate initiatives with Bitcoin acquisition remaining a central corporate objective. During an interview this month CEO Michael Saylor disclosed that MicroStrategy purchased 10,107 Bitcoin worth $1.1 billion to expand its digital asset holdings. 

The company’s 8-K filing reveals that MicroStrategy owns 471,107 Bitcoin worth approximately $30.4 billion. 

The company’s aggressive financial decision positions MicroStrategy at the forefront of cryptocurrency integration advocacy in corporate finance while showcasing future trends in digital asset investment.