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Seeking Alpha 2025-01-27 13:07:25

MicroStrategy proposes preferred stock offering

MicroStrategy ( NASDAQ: MSTR ) has proposed an offering of 2.5M shares of its Series A Perpetual Strike Preferred Stock. The company plans to use the net proceeds from the offering for general corporate purposes, including the acquisition of bitcoin and for working capital. The perpetual strike preferred stock will have a liquidation preference of $100 per share and will accumulate cumulative dividends at a fixed rate that will be determined at the pricing of the offering. MicroStrategy ( MSTR ) will have the right, at its election, to redeem all, and not less than all, of the perpetual strike preferred stock, at any time, for cash if the total aggregate liquidation preference of all preferred stock then outstanding is less than 25% of the aggregate liquidation preference of the stock issued in the offering. More on MicroStrategy MicroStrategy Is Buying Train Cars, Block Is Building Railroads MicroStrategy's Trillion Dollar Bitcoin Bet Is Not What It Seems (Upgrade) MicroStrategy: Shares Should Trade At A Premium MicroStrategy accumulates more bitcoins for ~$1.1B in cash MicroStrategy faces potential multibillion-dollar tax on unrealized bitcoin gains

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