The company, formerly known as MicroStrategy, has successfully raised $711.2 million through an enlarged preferred stock offering, primarily aimed at funding further Bitcoin acquisitions.
The firm set the price of its 10.00% Series A Perpetual Strife Preferred Stock at $85 per share, with 8.5 million shares available. The sale is projected to finalize on March 25, pending the completion of standard regulatory requirements.
Originally planned for $500 million, the offering was expanded due to robust investor interest.
After accounting for underwriting fees and offering costs, the net proceeds are anticipated to reach $711.2 million.
The company has indicated that the funds will be allocated for “general corporate purposes, including Bitcoin acquisition and working capital.”
‘We strategically acquire Bitcoin’
The preferred shares come with a 10% yearly dividend, disbursed quarterly in cash. Should the company fail to make a dividend payment, compounded dividends will begin to accumulate at an increasing rate—starting at 11% and escalating by 1% each quarter, up to a maximum of 18% annually.
The company reserves the right to redeem all issued preferred shares if less than 25% of the original shares remain or if certain tax-related events occur. Shareholders will also have the option to request a repurchase in case of a “fundamental change,” such as a shift in control.
This represents the company’s second significant capital raise in a short period. On March 17, it announced the acquisition of 130 BTC for $10.7 million, funded by proceeds from a prior preferred stock offering.
Since 2020, the company has been actively engaged in a Bitcoin (BTC) treasury strategy, shifting its balance sheet to include BTC.
“We strategically acquire Bitcoin and promote its significance as digital capital,” stated the firm. Additionally, it continues to enhance AI-driven enterprise analytics tools alongside its Bitcoin assets.