MicroStrategy has significantly exceeded expectations with its latest perpetual convertible preferred stock offering, securing $563.4 million—nearly three times the anticipated amount.
According to a Jan. 31 statement, the company expanded its STRK stock offering to 7.3 million shares, each carrying a $100 liquidation preference.
The company plans to allocate the proceeds toward corporate initiatives, including Bitcoin acquisitions and general working capital.
If approved by the board, investors will earn an 8% fixed annual dividend, paid quarterly starting March 31, 2025. Payments may be issued in cash, Class A common stock, or a combination.
Meanwhile, MicroStrategy retains the right to redeem all outstanding preferred STRK stock if the total liquidation preference falls below 25% of the original issuance or if certain tax events occur. The redemption price will be based on either the liquidation preference or the stock’s average market price over the last five trading days, whichever is higher.
MicroStrategy remains the largest corporate holder of Bitcoin, currently holding 471,000 BTC valued at around $50 billion. According to Saylortracker data, the firm has an unrealized profit of nearly $20 billion.
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