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.

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.

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

Offering Structure and Institutional Involvement

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

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.

Strategic Implications and Bitcoin Focus