In a latest development, MicroStrategy has announced launching a public offering of 2.5 million shares of its new Series A Perpetual Strike Preferred Stock. The company plans to use the proceeds for general corporate purposes, including the acquisition of bitcoin and for working capital.
The firm led by Executive Chairman Michael Saylor, said that the Series A Perpetual Preferred Stock (STRK) will have a $100 liquidation preferences with cumulative dividend.
Dividends will be paid quarterly starting March 31, 2025, and can be issued in cash, MicroStrategy Class A common stock, or a mix. Notably, the announcement came after MicroStrategy increased its bitcoin holding for the 12th straight week. In the week ended January 26, the company bought 10,107 BTC, taking its total holdings to 471,107 BTC, Saylor shared in an X post.
Investors can convert their preferred stock into common stock in certain circumstances. MicroStrategy has the option to redeem the preferred stock early if the liquidation value falls below 25% of the original offering or if certain tax events occur. Redemption would be at the liquidation value plus any unpaid dividends.
This offering gives investors the potential for stable returns through dividends and the flexibility to convert into common stock. Besides, MicroStrategy’s ongoing Bitcoin strategy adds a layer of interest for those watching the intersection of tech and cryptocurrency. Recently, MicroStrategy shareholders approved increasing the authorized number of Class A common shares to 10.3 billion from 330 million shares.
What do you think? Could this offering spark more interest from crypto-focused investors, or is it the flexibility in dividend payments and redemption that would draw more attention?
