Bitcoin holdings

MicroStrategy completes $563.4 million preferred stock issuance, plans to use part of the funds to increase Bitcoin holdings

ChainCatcher news, according to the official announcement, MicroStrategy has announced the pricing of its Strike preferred stock ($STRK) issuance, increasing the originally planned transaction size from $250 million to $584 million.According to the official announcement, Nasdaq-listed company MicroStrategy (MSTR) has announced the completion of the issuance of 7.3 million shares of Series A perpetual preferred stock (STRK), priced at $80 per share, with an expected net financing of $563.4 million. The liquidation price of the preferred stock is $100 per share, with an annual dividend rate of 8%, payable in cash or Class A common stock, and convertible into common stock at an initial conversion price of $1,000 per share.MicroStrategy stated that the proceeds from this financing will be used for general corporate purposes, including continuing to increase its Bitcoin holdings and supplementing operating capital. According to the terms, if the total liquidation value of the outstanding preferred stock is less than 25% of the total issuance amount, the company may redeem all of it; if a significant tax or legal event occurs, investors may request a buyback.This issuance is jointly underwritten by institutions such as Barclays and Moelis & Company, with settlement expected to be completed on February 5, 2025. As of January 2025, MicroStrategy holds approximately 190,000 Bitcoins, and this financing may further expand its Bitcoin holdings.
ChainCatcher Building the Web3 world with innovators