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The Daily Hodl 2025-02-01 19:45:57

MicroStrategy Announces $563,400,000 Stock Offering, Says Part of Proceeds Will Be Used To Acquire More Bitcoin

Software development firm MicroStrategy (MSTR) is announcing a massive new stock offering to raise funds for accumulating more Bitcoin ( BTC ). In a new press release, the business intelligence company says it is setting the price of its perpetual strike preferred stock offering at $80 per share with the hopes of obtaining $563.4 million, some of which would go towards acquiring more of the top crypto asset by market cap. Other ways the funds would be used include for working capital as well as general corporate expenses. A preferred stock offering is a way for a firm to raise capital without diluting its voting rights. They generally offer investors higher and more consistent yields as well as more stability. Says MicroStrategy, “The perpetual strike preferred stock will have a liquidation preference of $100 per share and will accumulate cumulative dividends at a fixed rate of 8.00% per annum… Holders of the perpetual strike preferred stock will have the right to convert their shares of perpetual strike preferred stock on any business day (subject to certain limitations) into shares of MicroStrategy’s class A common stock.” Earlier this month the shareholders of MicroStrategy – which was founded by Bitcoin maximalist and former chief executive Michael Saylor – voted to increase the number of shares in a bid to raise money to purchase more of the crypto king. At the time, it was reported that the proposal was to increase the number of common shares from 330 million to 10.3 billion and preferred shares from 5 million to 1 billion. The proposal passed with about 56% approval. According to data from BTC blockchain tracker Bitcoin Treasuries, MicroStrategy at time of writing has a stash of 471,107 BTC worth just over $48 billion. The flagship digital asset is trading for $102,002 at time of writing, a 3.2% decrease during the last 24 hours while MSTR is valued at $334 at time of writing, a 1.6% decrease on the day. Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Follow us on X , Facebook and Telegram Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post MicroStrategy Announces $563,400,000 Stock Offering, Says Part of Proceeds Will Be Used To Acquire More Bitcoin appeared first on The Daily Hodl .

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