MicroStrategy Increases Strike Preferred Stock Offering to $584 Million
MicroStrategy Inc (NASDAQ: MSTR) has outlined a plan to raise approximately $563.4 million by selling 7.3 million shares of Series A Perpetual Strike Preferred Stock at $80 each. The company aims to sell 8% of this stock, which is intended to finance further Bitcoin acquisitions.
Key points include:
- Previous plans involved raising $250 million from a 2.5 million stock offering.
- Demand for the preferred stock surged due to shareholder interest in indirect Bitcoin exposure.
- The stock sale will settle on February 5, 2025, with a liquidation preference of $100 per share and an 8% annual dividend.
- MicroStrategy holds approximately 471,107 BTC, constituting 57.32% of its market cap.
- Year-to-date BTC Yield is about 2.9%.
- Supported by major investors like Capital Group and Norges Bank, MicroStrategy plans to increase its BTC holdings towards one million.
- Growing perceptions of Bitcoin as a store of value over Gold are noted amid macroeconomic uncertainties.
Market insights indicate that MicroStrategy's commitment to Bitcoin has attracted institutional investment, leading to increased demand against a capped supply of 21 million BTC. Currently, around 2.17 million BTC are available on centralized exchanges, with about one million left to be mined.
A study suggests Bitcoin could exceed $1 million by 2027, potentially reaching multi-million valuations by 2030, driven by future adoption from nation-states, particularly in the U.S.