MicroStrategy Expands Preferred Stock Offering to $584M to Boost Bitcoin Holdings

MicroStrategy has significantly increased its preferred stock offering from $250 million to $584 million, aiming to support corporate initiatives and expand its Bitcoin portfolio. The announcement, made on February 1, 2025, details the issuance of 7.3 million shares of 8.00% Series A Perpetual Strike Preferred Stock at $80 per share.

Offering Structure and Institutional Backing

The preferred stock will yield an 8% annual dividend, with MicroStrategy expecting to net approximately $563.4 million after covering expenses and commissions. The offering is scheduled to close on February 5, 2025, pending standard conditions.

A consortium of financial institutions has been enlisted to manage and structure the offering, including:

• Barclays
• Moelis & Company
• BTIG
• TD Cowen
• Keefe, Bruyette & Woods
• AmeriVet
• Bancroft Capital
• The Benchmark Company

By opting for preferred stock over common stock, MicroStrategy seeks to secure funding while preserving the equity of existing common shareholders.

Strategic Focus on Bitcoin Expansion

The raised capital will fund various corporate strategies, with a strong emphasis on expanding MicroStrategy’s Bitcoin holdings. Earlier this month, Executive Chairman Michael Saylor announced the acquisition of 10,107 BTC for $1.1 billion, further solidifying the company’s position as a leading institutional Bitcoin holder.

According to the company’s recent 8-K filing, MicroStrategy now holds 471,107 Bitcoin, valued at approximately $30.4 billion.

The expanded offering highlights MicroStrategy’s ongoing commitment to Bitcoin accumulation and its strategic use of financial instruments to drive growth.